Should I Buy Amazon (AMZN)? — Finance YouTuber Analysis

The YouTuber significantly increased his Amazon position after strong Q1 earnings, citing accelerating revenue growth across multiple segments including AWS, advertising, and third-party services. He highlights the massive and rapidly growing chips business within Amazon, which he believes is undervalued by the market. Despite being at all-time highs, the stock's price-to-operating cash flow multiple is below its historical average, and DCF analysis suggests it is still undervalued, especially given its history of free cash flow exploding after capex cycles.

“I think that Amazon is surprisingly one of the ways to still get access and exposure to the chips industry and all of the demand that the chips industry is seeing at a very fair price.” — ▶ 17:00

The YouTuber is adding to Amazon (AMZN) despite it trading near all-time highs, believing it is still undervalued relative to its fundamentals and future outlook. He points to Amazon's significant investment in Anthropic, the massive AWS capacity commitment from Anthropic, and the potential for Amazon's Graviton CPU chips to benefit from an industry-wide CPU shortage, especially with the rise of Agentic AI. His DCF analysis, even with conservative growth estimates, suggests undervaluation.

“I do believe that Amazon's stock is still offering value relative to the company's fundamentals and its future outlook.” — ▶ 14:00

The YouTuber is extremely bullish on Amazon, considering it his favorite stock for long-term investors due to its attractive valuation and ongoing transformation. He highlights its strong revenue growth, significant operating margin expansion, and its shift from an e-commerce company to an AI infrastructure, cloud, and advertising platform. He believes AWS's high margins, the growth of Amazon advertising, and robotics automation will drive further profitability and stock price appreciation. He has a price target of $362 per share.

“My price target for Amazon is right around $362 per share. That was just based off of a financial model that I personally made that I spent all basically weekend doing.” — ▶ 45:00

Henry sees Amazon as undervalued, noting its underperformance relative to the S&P 500 over the last five years. He highlights significant operating margin expansion (from 5-6% to 13%), strong revenue growth, and its transformation from an e-commerce company to an AI infrastructure, cloud, and advertising platform.

“The main shift is from e-commerce. Okay, they were focused heavy on e-commerce and they still are. But now there's a shift from ecom company to AI infrastructure company.” — ▶ 18:00

The YouTuber is bullish on Amazon due to its attractive valuation, despite recent underperformance. They highlight significant revenue growth, improved operating margins (from 5-6% to 13%), and the company's evolution into a hybrid infrastructure, cloud, and ad platform business. The low P/E ratio relative to its growth and profitability makes it a 'stupid cheap' opportunity.

“The market cap sitting under three billion is stupid cheap. And mark my words, just like Google is racing to become the most valuable company in the world ahead of Nvidia, Amazon is going to play the same game before you know it.” — ▶ Watch clip

The YouTuber plans to roll his deep in-the-money Amazon covered call from a $230 strike to a $250 strike, extending the expiration to December. He is willing to pay a small debit of around $1,000 for this adjustment, as it unlocks $30,000 in potential upside if Amazon continues to rise, significantly improving his position while retaining the stock.

“I would go from 230 to 250. That's my plan. Um, you know, I'll probably execute on this in the near future and take this position higher in terms of strike, which will unlock value for me.” — ▶ 12:50

The YouTuber believes Amazon has a very bright future due to its involvement in numerous markets and its ability to innovate, as demonstrated by AWS. They see the current valuation as attractive for an incredible company that will be a major player in AI and robotics in five years.

“I'm very very happy to continue to get Amazon at these depressed prices. It's not quite as cheap as it was last year. But in regards to getting really good pricing on an incredible company that I think 5 years from now is clearly going to be bigger and be one of the big players in the AI race and everything else, Amazon's definitely it for me.” — ▶ Watch clip

The YouTuber has been bullish on Amazon for years, noting it was 'stupid cheap' previously. They see it as a long-term 'growth beast' that continues to grow, despite not expecting a 10x return overnight.

“This is definitely a long-term play. It's not going to be a it's not going to 10x tomorrow. Anything else on that for you, but it's just going to be a growth beast that continues to grow into the future there.” — ▶ 13:00

The YouTuber believes Amazon will be a big winner in the next few years, expecting it to be significantly larger in five years. He highlights the acceleration of growth and entry into higher-profit margin businesses, anticipating that new initiatives will generate substantial returns despite high capital expenditures.

“I believe Amazon as well is going to be a big winner in the next few years. Okay? Look out 5 years and you tell me if you think Amazon's going to be bigger or smaller than what they are right now. they they are accelerating their growth and some of their growth levers and they're getting into higher and higher profit margin businesses overall.” — ▶ Watch clip

The YouTuber believes Amazon is a phenomenal business with strong bull cases in advertising, North American retail profitability, and AWS growth. However, he finds its current price of $245 to be fair value based on his conservative assumptions, not offering the 15% return he seeks. He would only consider buying if the price drops significantly lower to provide a sufficient discount.

“The stock is currently at 245. I have a low price of 107, high price of 485. And guys, 245 in the middle, 240, it's basically, in my opinion, selling for what it's worth. Now, that's my analysis of it. You might disagree.” — ▶ 17:40

The YouTuber holds Amazon, highlighting its strong AWS growth (24% last quarter) and increasing in-house chip production, which reduces reliance on external manufacturers. Other growth drivers include the advertising business (22% growth with high margins) and the new satellite internet service, Amazon Kuiper, projected to add $20 billion in annual revenue by 2030. While not a 'bargain' at a forward P/E of 27 and PEG of 1.47, the diversified growth avenues and strong projected 18% annual earnings growth make it a long-term hold.

“Die dritte Aktie ist Amazon und bereits eine meiner größten Positionen in meinem Depot.” — ▶ 6:40

The YouTuber holds Amazon, which is their third-largest position with 52% gains. No specific new reasons are given beyond it being a significant holding in their growth portfolio.

“Die drittgrößte Position ist Amazon mit 52% Kursgewinn.” — ▶ Watch clip

The YouTuber recommends Amazon as a stock everyone should own, emphasizing its long-term growth potential driven by its core e-commerce platform, the AWS cloud business, and its rapidly growing advertising segment. He states that there is no current disruption risk to these key areas, making it a continuous 'buy' for the foreseeable future.

“Amazon is always a buy. It was a buy yesterday. It was a buy a month ago. It was a buy a year ago. It was buy 10 years ago. It was buy 20 years ago. It's a buy today. It's buy tomorrow. It's a buy the next month. It's buy next year. It's always a buy.” — ▶ 25:50