Amazon's Strong Growth Prospects Continue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy AMZN?
Source: NASDAQ.COM
- Strong Stock Performance: As of May 7, Amazon's stock has risen 19.7% year-to-date, making it the second-best performer among the 'Magnificent Seven' stocks, indicating robust market performance and investor confidence.
- Surging Cloud Demand: AWS is experiencing accelerated growth due to rising AI demand, and despite current constraints from demand exceeding capacity, Amazon's $200 billion capital expenditure plan through 2026 aims to enhance data centers and AI infrastructure to meet future needs.
- Thriving Advertising Business: Amazon's advertising segment generated $70 billion in revenue over the past 12 months, reflecting a 24% year-over-year increase, and with its vast user data and traffic, the advertising platform is poised to become a significant revenue driver for the company.
- Long-term Investment Appeal: Analysts suggest that Amazon, as a blue-chip stock, is a solid long-term hold, especially in the current market climate, encouraging investors to seize buying opportunities before potential price pullbacks to secure future returns.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMZN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 272.680
Low
175.00
Averages
280.01
High
325.00
Current: 272.680
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cerebras IPO Valuation Could Reach $48.8 Billion
- IPO Price Range Increase: Cerebras Systems has raised its initial public offering (IPO) price range to $150 to $160 per share in its latest filing, up from $115 to $125 last week, potentially raising up to $4.8 billion, indicating strong market confidence in its valuation.
- Significant Valuation Boost: With the new price range, Cerebras could be valued at $48.8 billion, a substantial increase from the $23 billion valuation announced in February, reflecting heightened investor confidence in its position in the AI chip market.
- Strategic Partnership with OpenAI: The collaboration between Cerebras and OpenAI is deepening, with OpenAI committing over $20 billion, underscoring the critical role of Cerebras' chips in training generative AI models, thereby solidifying its market position.
- Cloud Services Expansion: Cerebras is not only focusing on hardware sales but also deploying its chips in data centers and providing cloud services, facing competition from Amazon Web Services, yet its technological advantages allow it to carve out a niche in the market.
See More
Corporate Profits Surge, S&P 500 Hits Record Highs
- Significant Earnings Growth: S&P 500 companies are projected to achieve a 26% year-over-year earnings growth in Q1, surpassing the 12% consensus forecast from April 1, marking the best earnings season since 2021.
- Outperformance: Of the 445 S&P 500 companies that have reported, 64% exceeded both earnings and sales expectations, significantly above the historical average of 42% since 2001, indicating a boost in market confidence.
- Strong Sales Growth: Adjusted for foreign exchange fluctuations and inflation, sales growth is expected to rise by 7%, reflecting companies' resilience and adaptability in the current economic environment, further solidifying investor confidence.
- Complex Economic Outlook: Despite the strong earnings performance in Q1, the economic backdrop remains complicated, with unclear consumer prospects; companies like McDonald's and Planet Fitness indicate weakness among lower-income groups, which could impact future earnings growth.
See More
Cerebras Plans IPO, Aiming to Raise Up to $5.52 Billion
- Strong Market Demand: Cerebras recently filed an S-1 with the SEC to go public on Nasdaq, planning to offer 30 million shares at a price range of $150 to $160 per share, potentially raising up to $4.8 billion, reflecting strong interest from institutional investors.
- Innovative Chip Technology: Cerebras's Wafer-Scale Engine (WSE) utilizes an entire silicon wafer design, featuring 4 trillion transistors and 900,000 cores, significantly reducing latency in AI systems, positioning it as a formidable competitor to Nvidia's GPUs.
- Future Performance Expectations: Cerebras generated $510 million in revenue for 2025, with an operating loss of $345 million, yet its remaining performance obligation stands at $24.6 billion, indicating strong growth potential as revenue recognition is expected in the coming years.
- Strategic Partnership Opportunities: Cerebras has secured a $20 billion, 750-megawatt deal with OpenAI and partnered with Amazon Web Services, enhancing its technology's application in cloud computing, which could lay the groundwork for future profitability.
See More
CoreWeave Stock Analysis Post-IPO Volatility
- Significant Revenue Growth: CoreWeave's latest quarter saw revenue exceed $2 billion, more than doubling year-over-year, indicating strong market performance amid surging AI compute demand, although the stock price has not reflected this growth.
- Diversified Customer Base: Currently, 10 customers have pledged to spend at least $1 billion on CoreWeave services, demonstrating the company's successful expansion of its customer base, which reduces reliance on any single client and enhances business stability and sustainability.
- Increased Debt Risk: CoreWeave's reliance on high leverage for expansion has raised investor concerns regarding future spending and debt levels, particularly as the company forecasts capital expenditures to rise to $31 billion, which could impact stock performance.
- Optimistic Market Outlook: Despite challenges, CoreWeave's backlog has approached $100 billion, indicating strong market demand, and S&P recently upgraded its credit outlook from stable to positive, reflecting market confidence in its future growth.
See More
CoreWeave's Stock Volatility Post-IPO
- Significant Revenue Growth: CoreWeave's latest quarter saw revenue exceed $2 billion, more than doubling year-over-year, reflecting strong market performance amid surging AI compute demand, despite pressures from high capital expenditures.
- Diversified Customer Base: Currently, 10 customers have pledged to spend at least $1 billion on CoreWeave services, indicating successful expansion of its customer base, which reduces reliance on any single client and enhances business stability and growth potential.
- Increased Debt Risk: CoreWeave's reliance on high leverage for expansion raises concerns among investors regarding its future capital spending and debt management, even as S&P upgraded its credit outlook from stable to positive, potentially impacting stock performance.
- Strong Backlog: CoreWeave's backlog is nearing $100 billion, representing active contracts and future revenue sources, demonstrating robust market demand in the AI sector, despite significant short-term stock price fluctuations.
See More
The Importance of Tolerance for Volatility in Investing
- Historical Lessons: Even the smartest individuals in history have faced significant losses in stock investing, highlighting that market volatility is an unavoidable risk in investing, necessitating investors to be psychologically prepared to handle such fluctuations.
- Amazon Case Study: Taking Amazon as an example, the company has experienced substantial stock price volatility throughout its development, and investors who can endure short-term fluctuations may have the opportunity for long-term capital appreciation, leading to wealth growth.
- Coca-Cola Analysis: Coca-Cola's stock price has also undergone multiple fluctuations; however, its brand value and market position have allowed long-term holders to achieve substantial returns, emphasizing the importance of patience and long-term investment.
- Investment Mindset: The video underscores that possessing the psychological resilience to cope with market volatility is crucial for success in investing, and investors should cultivate this mindset to remain calm and rational in the face of market uncertainties.
See More
Cerebras IPO Valuation Could Reach $48.8 Billion
- IPO Price Range Increase: Cerebras Systems has raised its initial public offering (IPO) price range to $150 to $160 per share in its latest filing, up from $115 to $125 last week, potentially raising up to $4.8 billion, indicating strong market confidence in its valuation.
- Significant Valuation Boost: With the new price range, Cerebras could be valued at $48.8 billion, a substantial increase from the $23 billion valuation announced in February, reflecting heightened investor confidence in its position in the AI chip market.
- Strategic Partnership with OpenAI: The collaboration between Cerebras and OpenAI is deepening, with OpenAI committing over $20 billion, underscoring the critical role of Cerebras' chips in training generative AI models, thereby solidifying its market position.
- Cloud Services Expansion: Cerebras is not only focusing on hardware sales but also deploying its chips in data centers and providing cloud services, facing competition from Amazon Web Services, yet its technological advantages allow it to carve out a niche in the market.
See More
Corporate Profits Surge, S&P 500 Hits Record Highs
- Significant Earnings Growth: S&P 500 companies are projected to achieve a 26% year-over-year earnings growth in Q1, surpassing the 12% consensus forecast from April 1, marking the best earnings season since 2021.
- Outperformance: Of the 445 S&P 500 companies that have reported, 64% exceeded both earnings and sales expectations, significantly above the historical average of 42% since 2001, indicating a boost in market confidence.
- Strong Sales Growth: Adjusted for foreign exchange fluctuations and inflation, sales growth is expected to rise by 7%, reflecting companies' resilience and adaptability in the current economic environment, further solidifying investor confidence.
- Complex Economic Outlook: Despite the strong earnings performance in Q1, the economic backdrop remains complicated, with unclear consumer prospects; companies like McDonald's and Planet Fitness indicate weakness among lower-income groups, which could impact future earnings growth.
See More
Cerebras Plans IPO, Aiming to Raise Up to $5.52 Billion
- Strong Market Demand: Cerebras recently filed an S-1 with the SEC to go public on Nasdaq, planning to offer 30 million shares at a price range of $150 to $160 per share, potentially raising up to $4.8 billion, reflecting strong interest from institutional investors.
- Innovative Chip Technology: Cerebras's Wafer-Scale Engine (WSE) utilizes an entire silicon wafer design, featuring 4 trillion transistors and 900,000 cores, significantly reducing latency in AI systems, positioning it as a formidable competitor to Nvidia's GPUs.
- Future Performance Expectations: Cerebras generated $510 million in revenue for 2025, with an operating loss of $345 million, yet its remaining performance obligation stands at $24.6 billion, indicating strong growth potential as revenue recognition is expected in the coming years.
- Strategic Partnership Opportunities: Cerebras has secured a $20 billion, 750-megawatt deal with OpenAI and partnered with Amazon Web Services, enhancing its technology's application in cloud computing, which could lay the groundwork for future profitability.
See More
CoreWeave Stock Analysis Post-IPO Volatility
- Significant Revenue Growth: CoreWeave's latest quarter saw revenue exceed $2 billion, more than doubling year-over-year, indicating strong market performance amid surging AI compute demand, although the stock price has not reflected this growth.
- Diversified Customer Base: Currently, 10 customers have pledged to spend at least $1 billion on CoreWeave services, demonstrating the company's successful expansion of its customer base, which reduces reliance on any single client and enhances business stability and sustainability.
- Increased Debt Risk: CoreWeave's reliance on high leverage for expansion has raised investor concerns regarding future spending and debt levels, particularly as the company forecasts capital expenditures to rise to $31 billion, which could impact stock performance.
- Optimistic Market Outlook: Despite challenges, CoreWeave's backlog has approached $100 billion, indicating strong market demand, and S&P recently upgraded its credit outlook from stable to positive, reflecting market confidence in its future growth.
See More
CoreWeave's Stock Volatility Post-IPO
- Significant Revenue Growth: CoreWeave's latest quarter saw revenue exceed $2 billion, more than doubling year-over-year, reflecting strong market performance amid surging AI compute demand, despite pressures from high capital expenditures.
- Diversified Customer Base: Currently, 10 customers have pledged to spend at least $1 billion on CoreWeave services, indicating successful expansion of its customer base, which reduces reliance on any single client and enhances business stability and growth potential.
- Increased Debt Risk: CoreWeave's reliance on high leverage for expansion raises concerns among investors regarding its future capital spending and debt management, even as S&P upgraded its credit outlook from stable to positive, potentially impacting stock performance.
- Strong Backlog: CoreWeave's backlog is nearing $100 billion, representing active contracts and future revenue sources, demonstrating robust market demand in the AI sector, despite significant short-term stock price fluctuations.
See More
The Importance of Tolerance for Volatility in Investing
- Historical Lessons: Even the smartest individuals in history have faced significant losses in stock investing, highlighting that market volatility is an unavoidable risk in investing, necessitating investors to be psychologically prepared to handle such fluctuations.
- Amazon Case Study: Taking Amazon as an example, the company has experienced substantial stock price volatility throughout its development, and investors who can endure short-term fluctuations may have the opportunity for long-term capital appreciation, leading to wealth growth.
- Coca-Cola Analysis: Coca-Cola's stock price has also undergone multiple fluctuations; however, its brand value and market position have allowed long-term holders to achieve substantial returns, emphasizing the importance of patience and long-term investment.
- Investment Mindset: The video underscores that possessing the psychological resilience to cope with market volatility is crucial for success in investing, and investors should cultivate this mindset to remain calm and rational in the face of market uncertainties.
See More
