Amazon is still a “reasonably cheap” stock, this investor says

Propellus Wealth Partners portfolio manager and senior wealth advisor Mike Vinokur says Amazon (Amazon.com Stock Quote, Chart, News, Analysts, Financials NASDAQ:AMZN) is not a traditional value stock, but remains a high-quality platform with multiple growth drivers.

Speaking on BNN Bloomberg’s Market Call recently, Vinokur said Amazon is not cheap, pays no dividend and is spending heavily on AI, AWS, data centres and GPUs.

But he said the company’s platform, network effects, balance sheet and operating cash flow make it an attractive holding.

“You’ve got to give Jeff Bezos and now Andy Jassy a tip of the hat,” Vinokur said.

The fund manager said Amazon remains one of the few brands consumers think of across shopping, grocery, tools, music, video and easy returns.

Vinokur said AWS (Amazon Web Services) remains a major growth engine, while Amazon’s advertising business should add another source of upside.

“We think that this is just a great enterprise and reasonably cheap on the valuation,” he said.

Asked about Amazon investing in a nuclear power project in Maryland, Vinokur said the move makes sense given the power needs of hyperscale data centres.

He said large technology companies are helping fund adjacent energy projects to ensure they have enough power for AI infrastructure.

Electricity demand, he said, has shifted from an uninspiring growth category to a much more important constraint.

“It’s a very hot commodity, and it went from boring demand growth to something that we really need a lot more of,” Vinokur said.

Of the analysts covering Amazon, seventy-seven  rate it “Buy,” four rate it “Hold” and none rate it “Sell,” with a consensus target of US$331.83.

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