Undervalued Trade Call on Amazon (AMZN)
"The next undervalued AI stock I'm going to present is Amazon. Amazon's trading at a current market price of $219, and I calculated a fair value for the stock at $295. Of course, Amazon stock is under pressure here in 2025. It is directly exposed to the negative impacts of tariffs and that's why you're seeing Amazon stock trading at such a low valuation. Additionally, investors are concerned about the outages caused by Amazon this week. But that really hasn't had a negative impact on the company's stock price. In fact, on the day of the outage, Amazon stock price was up."
The speaker highlights Amazon as an undervalued stock trading at $219 with a calculated fair value of $295, noting that negative factors like tariffs and outages are offset by favorable trade developments. This presents an actionable buy call based on strong free cash flow projections and tailwinds in online shopping.
Buy Opportunity on Amazon Dip
"Now questions here for Amazon and Marll. Am I worried about Amazon? Are people going to say, "Look, is this compute loss that Amazon could have gotten from Anthropic?" In theory, yes. If Amazon sees a negative reaction to this, I would gladly want to buy the dip, right? Amazon is one of my favorite Mac 7s right now in forms of valuation. I don't own it, but it's one I really, really do enjoy these levels. And any drop in my opinion below 215s into the 210s is a definite buy opportunity for me if I had cash in my portfolio right now."
The speaker expresses a clear trade call on Amazon, stating that any dip below the 215-210 range represents a buy opportunity, reflecting confidence in its valuation and potential for recovery amidst market reactions.
Amazon Put Option Trade Call on Dip Buying
"I continue to think Amazon is a is a great value here, but some of you may want to be a little bit more patient. Some of you may want to earn income. Some of you may want to utilize options. And that's why I continue to stand by this particular option play. This is a um one that I covered on a recent video investing $100,000 into a single stock. It was on Amazon covering this particular put option. So, if you didn't yet get into that, you still can because you still have roughly 30 days till expiration. That $200 strike ending on November 21st can earn you $355. Put that into real dollar terms, that's $355 per contract. So, one contract, you can generate 355. And that puts you on the hook saying, "Hey, I will gladly buy Amazon if that stock price does in fact drop below 200 over the course of the next 21 days. I have no issue buying Amazon at a price tag at 200. Will that be the exact bottom? I don't know. we could go down to 180, but doing my homework right now, I have no problem buying this particular company at $200 if it in fact gets um that low."
The speaker presents a trade call on Amazon, recommending a put option play that allows investors to buy the stock at $200 if it drops. He explains the mechanics of the option with clear time sensitivity (roughly 30 days until expiration) and a defined strike price, indicating strong conviction on Amazon's value at a dip.
Amazon Leverages AI to Enhance Shopping Experience
"One that I find super interesting today, up as much as about 1.3%. But this is after Amazon said it is rolling out a new AI powered tool that will recommend a specific product when shoppers are feeling overwhelmed. So, this is made essentially for the indecisive. Apparently, if you're spending way too much time clicking through different products, it's supposed to hop in there and start recommending some to narrow it down for you."
The discussion covers Amazon's recent announcement of a new AI-powered tool aimed at streamlining the shopping process. The new feature is designed to help consumers by recommending products when they are overwhelmed by choices, suggesting a potential catalyst for the stock given its innovative approach.
Amazon Stock Price Target and Trade Position
"So if we combine these two and we think that everything is on track and remains the same, nothing changes and the company moves forward progressing towards the $922 in earnings per share and the market values the company at a forward PE of 31.22. In that scenario, Amazon stock price could end next year at $287.85. That would be a nice increase from the current market price of $21642 as I'm recording this video. As an Amazon shareholder myself, I bought Amazon stock roughly 3 weeks ago. I would be grateful for that return on investment."
The speaker presents a model-based price target for Amazon stock next year, using the company’s EPS estimate and forward PE ratio. He highlights a base scenario of $287.85 per share, notes potential upside if multiples expand, and acknowledges downside risks. His recent purchase of Amazon stock reinforces his bullish conviction despite potential negatives.
Amazon Earnings Dip: Buy Every Share if It Drops
"What if Amazon stock goes down on these earnings? What do you do? You buy every share you possibly can. I think there's a pretty low probability – probably a 30% chance it goes down and a 70% chance it goes up on earnings. At the end of the day, this stock's going 300 plus next year. If, for any reason, that 30% probability plays out, buy every share in sight. There's no reason not to take advantage of good deals in the market."
Bill Baroo offers an actionable trade idea for Amazon, suggesting that if the stock dips on earnings – which he estimates has a 30% probability – investors should aggressively buy shares. He maintains a strong bullish view on Amazon's longer-term prospects, expecting the stock to exceed 300 next year, making any earnings dip an attractive buying opportunity.
AWS outage undermines Amazon's reliability
"The day Amazon broke the internet for millions of Americans. A glitch with an obscure Amazon database disrupted core internet services causing Alexa devices and financial trades to malfunction. The faulty update sent the well-oiled machine careening towards a crash, resulting in prolonged outages across critical services, including my own website Qualrum. This massive failure not only inflicted immediate reputational damage on AWS but is also likely to push companies towards a multicloud strategy, further hurting Amazon's market dominance."
The speaker highlights an AWS outage that caused widespread disruptions and reputational damage for Amazon (AMZN), suggesting that this failure may lead customers to adopt multicloud strategies, negatively impacting Amazon in the long run.
Bullish Company Commentary on Amazon
"The first thing, Amazon, it's a top five position in my portfolio. And I want to acknowledge the internet was shut down yesterday. If you were affected by this outage, own the company. Because if you're bitching about Snapchat not being available, about some of your apps not being available, it's because of Amazon. That's how big AWS is. You want to own a company that can shut the world down."
The speaker underscores Amazon's dominant market position and resilience during a major internet outage, noting its highly rated quant score and emphasizing that owning Amazon gives you exposure to a company capable of impacting global connectivity.
Buying the Dip on Amazon Amid Undervaluation
"Now the second one which is a funny pick which is a competitor to Melly is Amazon and this is the ones that I own and it's been a disappointment. It's down 3% on the year. Every single stock is up even I believe Coke is up. Pepsi is up I think and and Amazon Amazon's down 3%. So, it's been a little bit of a disappointment, but this is some the times where you have to look at what Mr. Market is doing and you have to look at what the company's doing. And as the company is getting better, but the stock's going down and it's looking undervalued, then to me, this is an opportunity to be buying the dip."
The speaker discusses Amazon as a trade opportunity despite recent disappointing performance, with the stock down 3% while peers are up. Highlighting that the stock appears undervalued relative to its improving fundamentals, the speaker indicates that he has been buying the dip at around $175, viewing this as an opportunity to average down on a solid, multifaceted company.
Buy Call on Amazon (AMZN)
"The second one that I bought today was Amazon. I increased my position by another $3,000 in this company. I bought it not near an all-time high. Amazon's going through a little bit of a dip, but I believe there's going to be a lot of bullish catalysts over the next 3 years with Amazon. AWS continues to predictably grow its profit engine and Amazon still maintains its dominant lead in US e-commerce. There are also exciting initiatives in logistics, robotics, and automation that will further propel the company."
The host adds to his Amazon position with an additional $3,000 purchase, viewing the recent dip as a buying opportunity. He underlines Amazon's strengths in AWS, its leading position in e-commerce, and future growth catalysts in logistics and automation, making it a compelling long-term hold.