Amazon Undervalued Trade Call

2 months ago

Parkev Tatevosian, CFA

"Now, despite the momentum in Amazon stock price, I still feel these shares are undervalued. I recently bought Amazon stock for my own portfolio a couple of weeks ago, and the current market price at $250 is still well below the fair value for this stock I calculated at $34. Furthermore, when I go to fiscal.ai, my preferred data provider, and retrieve the forward price to earnings ratio, Amazon is trading at near the lowest valuation. So, even though investors are getting excited about Amazon stock, I think there's significant upside ahead at these current valuations. I believe Amazon is one of the best stocks you can buy right now."

The speaker expresses a strong buy recommendation for Amazon (AMZN), emphasizing that despite current market excitement, the stock remains undervalued. Citing current trading at $250 compared to a calculated fair value of $34 (as mentioned in the transcript) and supportive forward PE data, the speaker indicates significant upside potential, particularly given robust AWS performance. This trade call highlights Amazon's profitability and growth trajectory.

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