Just entered a $10,000 position in $AMZN at 18.
After doing hours of research, I think Amazon has one of the best risk-reward setups in the entire Magnificent 7 right now.
• AWS: Q2 revenue hit $42.2B, up 37% YoY, fastest growth in 18 quarters, 39% operating margin, $169B annualized run rate, $496B backlog
• AI: Trainium, Graviton, and AI services are above a $25B annual revenue run rate, with 2026 capex raised to $220B
• Advertising: Revenue grew 26% to $19.8B
• E-commerce: Margins are expanding as same day and overnight delivery continue scaling
• Valuation: 20x trailing earnings and high teens to mid 20s forward P/E which is SUPER cheap for a business like Amazon
• Price Targets: Consensus around $330 with some reaching over $400
Amazon isn’t just e-commerce anymore.
It’s becoming one of the biggest AI, cloud, and advertising company in the entire world.
$500 is the longer term setup.