Parkev Tatevosian, CFA on $AMZN (Nov 2, 2026)
Amazon trades just over $240 versus the speaker's $325 DCF fair value and is among his top nine buys now. He cites accelerating AWS growth and forecasts of at least 40% AWS growth for 2027-2028; AI capex over $300 billion in 2027 explains the attractive price. He owns AMZN and would add more near current levels.
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What you see here is Amazon stock and my discounted cash flow valuation model for Amazon, where I estimate how much free cash flow I think the company will generate from today to the very distant future, and then I discount those cash flows to their value today because money in the future is worth less to us than the money in our pockets today.
For Amazon, I calculated the fair value at $325 , while the current market price is just over $240. This is one of the reasons, among several, that makes me think Amazon is one of the top nine stocks you can buy right now.
Just a few days ago, Amazon announced its quarterly financial results and achieved another quarter of accelerated revenue growth in its most profitable segment, Amazon Web Services (AWS).
The administration also presented unprecedented forecasts for the next two years for the AWS sector, predicting growth of at least 40% for 2027 and 2028.
Despite this optimistic outlook, spending on artificial intelligence is causing concern among investors. They are now on track, if we calculate their latest capital expenditure figures on an annual basis, to exceed $300 billion in capital expenditures in 2027.
This is the figure that worries investors , and it is the reason why investors are able to buy Amazon stock at a relatively attractive price today at $240.
I took the opportunity and added Amazon stock to my investment portfolio , and I am interested in adding more if prices remain close to these levels.
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Parkev Tatevosian, CFA has 13 calls on this stock; only the adjacent ones are shown.