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Amazon (AMZN) Fires on All Cylinders; Top Analyst Sheds Light

Tigress' Ivan Feinseth anticipates the Street will send AMZN shares to even loftier valuation as long as its stellar growth steams ahead.


Following killer growth exhibited in Amazon’s (NASDAQ:AMZN) first quarter earnings show last Thursday, top analyst Ivan Feinseth at Tigress spotlights an e-commerce and cloud king marching forward in its reign spanning international markets- and “new industry verticals.”

In reaction to the print, the analyst angles for meaningful upside from current trading levels, reiterating a Buy rating on AMZN stock without listing a price target.

For the first quarter, the company’s sales revenue shot up 35.5% year-over-year from $142.57 to $193.19 billion on back of climbing e-commerce leadership expansion as well as further market momentum in traditional retail and rapid-fire growth in Amazon Web Services (AWS). Glancing to the next-twelve-months, the analyst estimates another 28.7% lift to $248.62 billion for Amazon, as its big revenue drivers continue to boast strength. The company’s Economic Operating Cash Flow rose 44.3% year-over-year from $31.61 to $45.61 million throughout the last-twelve-months. In the next-twelve-months, Feinseth angles for another 21% surge to $55.10 billion. Though Economic Profit dipped from $117.3 million to a $-264.9 million, this is not a surprise considering the company’s focus on ramping up investment in its business’ one-two punch of growth and expansion.

Overall, “AMZN continues to benefit from AWS’s dominance in hosted cloud infrastructure and its expanding customer base along with a significant increase in paid Amazon Prime members. Amazon’s ongoing spending in growing its technologically advanced e-commerce and fulfillment infrastructure along with AWS’s growing customer base will continue to drive increased revenue and Economic Cash Flow. The addition advertising revenue, expanding Alexa audio interface, and increasing IoT connectivity will continue to drive further growth as well. AMZN continues to leverage AI (artificial intelligence) to collect data on how customers use its services and the products they buy to drive incremental improvements and better target potential purchases. As AMZN continues to demonstrate ongoing incremental investment that drives further growth and margin expansion, the market will continue to reward the share price,” contends Feinseth.

Ivan Feinseth has a very good TipRanks score with a 70% success rate and a high ranking of #113 out of 4,774 analysts. Feinseth garners 17.7% in his annual returns. Investors following Feinseth’s recommendation on AMZN realize an average of 39.9% in profits on the stock.

TipRanks showcases strong popularity on Wall Street when it comes to this e-commerce empire’s market opportunity. Out of 38 analysts polled in the last 3 months, a solid majority of 37 rate a Buy on AMZN stock while just 1 maintains a Hold. Notably, the 12-month average price target stands tall at $1,834.09, marking nearly 17% upside from where the stock is currently trading.