๐ The $AMZN Long Thesis: Why the Giant is Just Getting Started
Amazon is often viewed as a "mature" titan, but the underlying data suggests a massive growth engine hiding in plain sight. If youโre looking for a reason to stay bullish on $AMZN, here is the "nutshell" breakdown of why this stock is a powerhouse. ๐
โ๏ธ AWS: The Growth Engine is Re-Accelerating
While the market worries about AI saturation, AWS is projected to hit 26% growth this year. Whatโs even more impressive is the diversification of that growth. Only 16% of the backlog is tied to OpenAI-related workloads.
This means AWS isn't just riding a single AI hype wave; it has a broad, resilient enterprise base that provides a much safer floor than its competitors. ๐ก๏ธ
โ๏ธ Better Leverage, Better Concentration
When you compare $AMZN to other cloud giants like $ORCL (Oracle), the risk profile looks significantly cleaner:
โข Less Leveraged: Amazon maintains a healthier balance sheet with more flexible capital. ๐ฐ
โข Less Concentrated: It isn't overly dependent on a few massive "whale" clients, making its revenue streams far more stable. ๐
๐ต A Value Play in Disguise?
Despite its tech-heavy reputation, $AMZN is currently trading at 19x operating cash flow. For a company with double-digit growth in its high-margin cloud and advertising segments, this multiple is remarkably reasonable. ๐ท๏ธ
๐ง The Bottom Line
With AWS re-accelerating and the retail side becoming increasingly efficient through regionalization, the question isn't "Will it work?" but rather: Why wouldn't it? ๐
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