This investor still loves Amazon

Scotia Wealth Management portfolio manager Stan Wong says Amazon (Amazon Stock Quote, Chart, News, Analysts, Financials NASDAQ:AMZN) remains attractive among mega-cap technology stocks because of its earnings growth, AWS momentum and expanding AI opportunity.

Speaking on BNN Bloomberg’s Market Call on Aug. 13, Wong named Amazon as one of his top picks.

Wong said Amazon trades at about 28 times forward earnings while offering a long-term earnings growth rate of about 21%, creating what he described as a reasonable valuation for the growth profile.

“Very few companies, if you think about it, at this scale can really grow at 20-something percent earnings,” Wong said.

He said Amazon is now much more than an e-commerce company, with growth drivers across AWS cloud computing, digital advertising, logistics, AI services and custom chips.

Wong noted that Amazon is approaching US$1-trillion in annual revenue, with fiscal 2027 revenue forecast at about US$950-billion.

He said AWS is central to his thesis, with recent growth of 37%, the fastest pace in about a year and a half. He said Amazon’s AI spending is beginning to show results through faster cloud growth, broader AI deployment and improved profitability in logistics and fulfillment.

Wong said the AI shift remains early, with businesses still moving workloads to the cloud and adopting generative AI. He expects AWS to be a major beneficiary as that adoption accelerates.

The stock is up 19.66% over the past 12 months and 52.75% over five years.

Of the analysts covering Amazon, 78 rate it “Buy,” four rate it “Hold” and none rate it “Sell,” with a consensus target of US$328.95.

-30-