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Amazon Has Reached Its Peak, According To This Analyst

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Amazon Has Reached Its Peak, According To This Analyst

The peak in Amazon.com, Inc. (NASDAQ: AMZN) was bound to happen at some point after a 44,000 percent return since its initial public offering in the 1990s.

While some among Wall Street peg Amazon's valuation tosoar as high as $1 trillion in the future, Trip Chowdhry of Global Equities Research is calling Amazon's peak at a time when its valued at around $365 billion.

In a report on Thursday, Chowdhry argued that while there will only be two major Super Cloud providers: Amazon's AWS and Microsoft Corporation's (NASDAQ: MSFT) Azure. Yet this won't help boost Amazon's stock moving forward.

Chowdhry said that even though AWS can easily deliver up to 50 percent revenue growth for the next three to five years, these expectations are already factored into Amazon's valuation.

"Numerous non-tech and generalists in the investor community have lately been singing a lot of praises of AMZN-AWS," Chowdhry wrote. "This is a lagging indicator ...the above is very scary ..it is equivalent of Shoe Shine Boy telling how great is the AMZN-AWS. Basically, this is the peak for AMZN Stock!!!"

Chowdhry also shot down another major thesis bulls have been holding on to -- the company's prospects in India. He believes Amazon's ecommerce business will "fail" in India as the country won't be giving any ecommerce company a tax break.

Finally, Chowdhry blasted Amazon's other initiatives, including Fresh, Drones and Flex, as being merely "pure hot air."

Amazon shares traded recently at $766.40. The stock is up more than 13 percent year-to-date and 148 percent since 2015, hitting an all-time high north of $844 this past October.

Latest Ratings for AMZN

DateFirmActionFromTo
Oct 2019MaintainsMarket Outperform
Oct 2019MaintainsBuy
Oct 2019MaintainsOutperform

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Posted-In: Amazon AWS Amazon India Global Equities Research Microsoft AzureAnalyst Color Top Stories Analyst Ratings Tech Best of Benzinga

 

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