Axiom's Victor Anthony: Amazon's 'Standout' Takeaway Is Its Retail Business

Amazon.com, Inc. AMZN wowed the investment community with its impressive Q1 earnings beat.

While investors were focusing on Amazon's AWS segment, which demonstrated tremendous growth, Axiom Capital Management's Victor Anthony argued Amazon's "standout" takeaway is actually its retail business.

Speaking on CNBC's Squawk Box segment, Anthony said Amazon managed to grow its retail business "significantly faster" than many investors had expected.

Related Link: The Most Important Figures In Amazon's Q1 Report

Anthony also pointed out shares of Amazon were hard hit following its prior earnings report as investors assumed the company is embarking on "another investment cycle." However, the analyst added Thursday's print shows a different story - but investors shouldn't get too excited just yet as future quarterly reports could show a decline in profit due to increased investment spending.

Anthony added Amazon "is a multi-decade company" that is only in the early stages of "consolidating the retail environment."

When asked how Anthony would value the entire Amazon business, the analyst pointed out the company has two segments, AWS and the retail segment and both segments require a different approach to assigning a multiple.

Anthony continued the retail business should be valued at 1.5 to 2x sales. On the other hand, the AWS segment could be valued in the mid-teens multiple to EBITDA as it is a "highly profitable business."