Hightower Advisors’ Stephanie Link is on a buying spree, snapping up shares of Amazon.com Inc AMZN as the stock hits its most enticing valuation in recent memory.
A Bright Outlook: Link expressed her enthusiasm on CNBC’s “Fast Money Halftime Report,” citing the company’s alluring performance metrics. “It’s trading at 13 times EBITDA, historically it’s traded at over 20 times EBITDA,” she said, revealing her zeal for the stock.
The Seattle-based giant’s multifaceted potential is the primary allure for the investment strategist. Amazon Web Services (AWS) is anticipated to surge from the 12% growth reported last quarter, according to Link. She anticipates a 15% to 16% growth trajectory in the upcoming quarter, with room for further acceleration in the latter half of the year.
“They signed a whole bunch of new customers after the quarter closed, which leads me to believe that we are poised to witness an acceleration,” Link explained.
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Link is optimistic about Amazon’s margin, noting that retail margins are on an upward trajectory with potential for further escalation as the company addresses costs. She also pointed out that the surge in pandemic-related spending for meeting fulfillment demand is now in the rearview mirror, leaving the company with substantial operating leverage.
With a sanguine outlook on consumer spending, Link highlighted the robust 9.4% online retail sales. She underscored that Amazon is well-positioned to harness the ongoing momentum.
Advertising is another avenue for Amazon’s growth, as revenues are expected to rebound in 2024. Link emphasized that this might be underestimated, especially in the case of Amazon.
The Expert Consensus: Wall Street analysts have rallied behind Amazon as the clear favorite for 2024. Several panelists on the Halftime Report echoed positive sentiments about the Jeff Bezos-founded behemoth this week.
Virtus Investment Partners’ Joe Terranova hinted at potential purchases of Amazon stock when he rebalances the Virtus Terranova U.S. Quality Momentum ETF JOET.
AMZN Price Action: Reflecting its bullish trajectory, Amazon shares have surged by over 60% in the past year. At the time of publication, the stock showed a 0.74% uptick at $157.18, according to Benzinga Pro.
Photo: courtesy of Amazon.
