Amazon (NASDAQ: AMZN) has seen a strong performance this year, with a rise of over 20%. However, analysts believe that this increase is just the beginning of a larger movement for the company.
Three key facts about Amazon are driving investor interest in the stock. Firstly, Amazon Web Services (AWS) growth is back on track. AWS is Amazon’s cloud computing business, which allows customers to rent compute space and run workloads in the cloud. The increased demand for AI models has led to a surge in business for AWS, with notable financial results in the first quarter of the year.
Secondly, Amazon’s cash generation is accelerating, with the company seeing improvements in its North American and international divisions. This has boosted Amazon’s free cash flow significantly, indicating a positive trend for investors.
Lastly, despite its strong performance, Amazon remains below its average rating, as measured by its price-to-sales (P/S) ratio. This suggests that the stock may still be undervalued, making it a potentially attractive buy for investors.
Overall, with Amazon’s growth prospects and improving financials, analysts believe that the stock is a great buy at the current price. The company still has many opportunities for growth, making it a compelling choice for long-term investors.
In conclusion, Amazon’s stock is showing strong potential for future growth, making it an attractive investment opportunity for investors looking to capitalize on the company’s continued success.
Article Source
https://finance.yahoo.com/news/3-facts-amazon-stock-screaming-123000488.html
