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Amazon Already Peaked, At Least According To Trip Chowdhry

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Amazon Already Peaked, At Least According To Trip Chowdhry

After a mind-boggling 48,000 percent return since the 1990s, Amazon.com, Inc. (NASDAQ: AMZN)'s stock has reached its peak, at least according to Trip Chowdhry of Global Equities Research.

Chowdhry commented back in December of 2016 that Amazon's stock reached its peak.

Also in December, Chowdhry argued there was room for only two "Super Cloud" providers: Amazon's AWS and Microsoft Corporation (NASDAQ: MSFT)'s Azure. The analyst further noted that while Amazon's AWS segment can "easily" grow between 43 percent and 50 percent over the next three to five years, much of this growth potential is already factored into Amazon's valuation. Furthermore, the analyst said upside is limited.

"Numerous non-tech and generalists in the investor community have lately been singing a lot of praises of Amazon-AWS... this is a lagging indicator," the analyst wrote in December. "It is equivalent Shoe Shine Boy telling how great is the AMZN-AWS. Basically, this is the peak!!!"

Amazon's Q4

Chowdhry briefly commented in his latest research report that Amazon's fourth-quarter earnings report on Thursday did little to change his view that Amazon's stock has reached its peak.

While the analyst acknowledged that the AWS segment saw a 55 percent year-over-year revenue growth to $3.2 billion the segment will start seeing declining growth rates.

"Investors should factor in that Startup Bubble is bursting and companies have started to collapse (more on this some other time)," the analyst wrote on Thursday. "It will be very prudent for investors to cut their AWS revenue estimates by about 5 percent to 10 percent to factor the business they get from startups."

Latest Ratings for AMZN

DateFirmActionFromTo
Nov 2020China RenaissanceUpgradesHoldBuy
Nov 2020CitigroupMaintainsBuy
Oct 2020BenchmarkMaintainsBuy

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