DBS analyst Nashrullah Putra Sulaeman has maintained their bullish stance on AMZN stock, giving a Buy rating on May 2.
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Nashrullah Putra Sulaeman has given his Buy rating due to a combination of factors influencing Amazon’s performance. The company’s impressive operating income growth of 61% year-over-year in 4Q24, surpassing market expectations, highlights its strong financial health. Additionally, the expansion of Amazon’s operating margin to a record high of 11.3% underscores the efficiency gains, particularly in its international commerce segment.
Amazon’s retail segment is poised to be a significant growth driver, with expectations of continued profitability following a period of losses. The segment’s operating margin improvements, driven by cost efficiencies in delivery, further bolster its outlook. Meanwhile, Amazon Web Services remains a crucial profit center, despite anticipated slower growth due to macroeconomic factors. The company’s ambitions in the digital advertising space, with a projected market share increase, also contribute to its positive prospects. However, potential risks such as supply chain disruptions and regulatory challenges are noted, but they do not overshadow the overall positive growth trajectory anticipated for Amazon.
According to TipRanks, Putra Sulaeman is a 4-star analyst with an average return of 23.2% and a 94.12% success rate.