Amazon.com, Inc. (AMZN): A Bull Case Theory

We came across a bullish thesis on Amazon.com, Inc. on Disruptive Analytics’ Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on AMZN. Amazon.com, Inc.’s share was trading at $208.47 as of June 23rd. AMZN’s trailing and forward P/E were 33.95 and 32.26, respectively, according to Yahoo Finance.

Intapp (INTA) – New Lisbon R&D Center to Drive AI Innovation in Financial Services
Intapp (INTA) – New Lisbon R&D Center to Drive AI Innovation in Financial Services

A network of interconnected data points representing cloud-based software solutions.

Amazon (AMZN) is a complex business that, at first glance, appears to operate like a traditional logistics company, with millions of employees packing and delivering merchandise. Yet despite this scale, its e-commerce segment contributes relatively little to operating profits. The real engine lies elsewhere—Amazon Web Services (AWS) and advertising together account for nearly 80% of profits while representing only 30% of total revenue.

AWS, Amazon’s cloud division, dominates with a 50% market share and stands as critical infrastructure in the AI revolution, offering recurring, high-margin revenue amid competition from Microsoft and Alphabet. As AI adoption accelerates, Amazon’s massive data streams from its retail, logistics, and cloud businesses provide unmatched fuel for model training and deployment. This strategic advantage enables Amazon to lead in AI personalization, supply chain optimization, and automated customer service.

Amazon is capitalizing on this through heavy investment—over $100 billion in 2025—to expand its AI infrastructure and reinforce its leadership. Despite being among the most scrutinized stocks on Wall Street, with analyst price targets clustering around $240–$250, a DCF analysis aligns with this consensus, suggesting limited market mispricing. The main hesitation lies not in valuation or fundamentals but in the psychological barrier of owning a heavily indexed stock individually.

However, this concern may be misplaced. Amazon’s centrality in AI and cloud, and its sheer operational scale, make it an exceptional vehicle for long-term compounding. Even if widely owned, it remains a structurally advantaged asset likely to outperform as AI adoption deepens across industries.

Previously we covered a bullish thesis on Amazon.com, Inc. (AMZN) by Charly AI in January 2025, which highlighted Amazon’s AI edge through custom chips and cost-efficient infrastructure. The stock has depreciated by ~12.4% since then, as the thesis didn’t play out short term. The thesis still stands. Magnus Ofstad shares a similar view but emphasizes Amazon’s broader AI monetization engine.

Amazon.com, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 328 hedge fund portfolios held AMZN at the end of the first quarter, which was 339 in the previous quarter. While we acknowledge the risk and potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Source link

Visited 1 times, 1 visit(s) today

Related Article

Person in rugged terrain stands beside an overturned car with broken windows. Dense branches surround the scene, suggesting an accident

28 Surreal Pictures Showing How Wickedly Strong The Flash Floods In Texas Were

Over 80 people have died and dozens are still missing after flash floods struck central Texas this past July 4th weekend. RONALDO SCHEMIDT / AFP via Getty Images In 45 minutes, the Guadalupe River rose more than 26 feet. Eric Vryn / Getty Images The destruction is a terrifying reminder of nature’s power, and these

Gravestone of American biographer from 1800s among those vandalized in Mass. town

Gravestone of American biographer from 1800s among those vandalized in Mass. town

Police are investigating after two gravestones from the 1800s were vandalized at a local cemetery, including that of English-born author James Parton. At approximately 12 p.m. Sunday, police received reports of two gravestones at Oak Hill Cemetery that appeared to be damaged and vandalized, Newburyport City Marshal Matthew Simons said in a statement on Monday.

Carnival Corporation & plc (CCL): A Bull Case Theory

We came across a bullish thesis on Carnival Corporation & plc on Stock Region Research’s Substack by Stock Region. In this article, we will summarize the bull’s thesis on CCL. Carnival Corporation & plc’s share was trading at $25.48 as of June 25th. CCL’s trailing and forward P/E ratios were 13.34 and 13.76, respectively, according to Yahoo

A person looks at damage to the main building at Camp Mystic along the banks of the Guadalupe River.

Texas floods and climate change : NPR

A person looks at damage to the main building at Camp Mystic, along the banks of the Guadalupe River in Texas. A flash flood swept through the area in the early hours of July 4, 2025. Climate change is making heavy rain more common, leading to more flood risk in much of the U.S. Julio

Trump Advisor Bashes Apple for Tech's 'Longest-Running Soap Opera'

Trump Advisor Bashes Apple for Tech’s ‘Longest-Running Soap Opera’

White House trade advisor Peter Navarro gave Apple CEO Tim Cook a new, somewhat unexpected title in a recent interview: soap opera star. Navarro, who has advised President Donald Trump since his first term is a staunch tariff advocate, said on CNBC’s “Squawk on the Street” that Apple CEO Tim Cook isn’t doing enough to

costco has issued several recalls.

Costco Issued a HUGE Recall on Air Conditioners and Other Items

If you bought a window air conditioner from Costco in the last few years, you might want to give it a good look. The membership-only retailer has just issued a recall on two different window air conditioners along with several other big ticket items that could prove to be a safety risk, and some of

0
Would love your thoughts, please comment.x
()
x