logo
welcome
GuruFocus | Stock Market Research, Data and Tools

GuruFocus | Stock Market Research, Data and Tools

Amazon Offers Attractive Growth at a Reasonable Price

GuruFocus | Stock Market Research, Data and Tools
Summary
Nutrition label

87% Informative

Amazon trades at an above-market forward price-earnings ratio of 35 based on consensus full-year 2024 earnings.

I believe the stock is undervalued given the company's significant earnings growth potential.

Amazon 's nearly $600 billion in annual revenue for 2023 trails only Walmart in terms of revenue for U.S.-based companies.

The S&P 500 is expected to grow 2024 and 2025 earnings by 11% and 14.70% .

Amazon has strong long-term growth potential due to increasing global adoption of cloud computing, a secular shift toward online retail and international expansion opportunities.

The key risk to the Amazon bull case is regulatory risk due to the U.S. government and 17 states filed a landmark lawsuit claiming Amazon is an illegal monopoly.

VR Score

87

Informative language

87

Neutral language

45

Article tone

formal

Language

English

Language complexity

61

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

medium-lived

External references

19

https://www.reuters.com/legal/us-judge-sets-october-2026-trial-date-ftc-suit-against-amazon-2024-02-13/https://seekingalpha.com/article/4709482-amazon-com-inc-amzn-q2-2024-earnings-call-transcripthttps://www.gurufocus.com/term/gf-score/MSFThttps://www.gurufocus.com/term/gf-score/METAhttps://www.gurufocus.com/term/gf-score/NVDAhttps://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_071924.pdfhttps://www.gurufocus.com/term/gf-score/WMThttps://www.fool.com/investing/2024/07/20/microsoft-is-riding-a-cloud-computing-surge-can-in/#:~:text=Azure's%20market-share%20gains&text=According%20to%20Synergy%20Research%2C%20Azure's,from%208%25%20to%2010%25.https://www.gurufocus.com/term/gf-score/COSThttps://www.gurufocus.com/term/gf-score/AMZNhttps://d18rn0p25nwr6d.cloudfront.net/CIK-0001018724/c7c14359-36fa-40c3-b3ca-5bf7f3fa0b96.pdfhttps://www.gurufocus.com/term/gf-score/AAPLhttps://seekingalpha.com/article/4687801-amazon-com-inc-amzn-q1-2024-earnings-call-transcripthttps://www.gurufocus.com/term/gf-score/TGThttps://www.gurufocus.com/news/2491968/amazon-offers-attractive-growth-at-a-reasonable-price?r=caf6fe0e0db70d936033da5461e60141https://www.gurufocus.com/term/gf-score/GOOGhttps://www.cnn.com/2023/09/26/tech/ftc-sues-amazon-antitrust-monopoly-case/index.htmlhttps://www.statista.com/chart/18819/worldwide-market-share-of-leading-cloud-infrastructure-service-providers/https://s2.q4cdn.com/299287126/files/doc_financials/2024/q2/Webslides_Q224_Final.pdf

Affiliate links

no affiliate links