The last time we highlighted Amazon.com (AMZN) as a buy opportunity was on September 29. At the time, it traded at about $219. Today, it’s up to $225.22.
From here, we’d like to see AMZN retest $235 initially.
As we mentioned in late September, “Amazon is a no-brainer stock to buy and hold for the holiday rush. In fact, except for 2022, the e-commerce giant has historically pushed higher heading into the holidays, which we expect to happen again this year. Additionally, according to Salesforce, online spending during the holidays is expected to increase by 2.1% to $288 billion.”
Fueling more upside, AMZN saw “very robust” demand from the enterprise for their artificial intelligence and cloud computing services, said analysts at Wedbush Securities, as quoted by Seeking Alpha.
“We believe tech stocks will have a very strong 3Q earnings season led by Big Tech as the cloud stalwarts Microsoft, Alphabet, and Amazon had very robust AI enterprise demand in the quarter based on our field checks,” they added.
“While some investors continue to question the valuations and pace of this tech spending trend, we believe to the contrary the [Wall] Street is still underestimating how big this AI spending trajectory is, and we expect 3Q tech earnings to be another validation moment with a doubling down on aggressive initial cap-ex numbers into 2026,” they added.
Sincerely,
Ian Cooper
Recent Comments