Why Gene Munster Likes Amazon's Stock After Earnings

Amazon.com, Inc. AMZN stock finished last week down close to 8.5% after the company announced worse-than-expected earnings results. 

Loup Ventures' Gene Munster provided investors with insights on Amazon's stock, Monday on CNBC's "Squawk Box."

What Happened: Amazon reported quarterly earnings of $15.12 per share, which beat the estimate of $12.22 per share. The company reported quarterly revenue of $113.08 billion, which came in below the estimate of $115.07 billion. 

Amazon said it expects third-quarter revenue to be in a range of $106 billion to $112 billion, which was lower than the estimate of $118.62 billion.

Related Link: 9 Amazon Analysts Break Down Q2 Earnings: 'Comps Tougher Than Expected'

Munster's Take: Amazon "flushed a lot of the negativity" in its most recent earnings report, Munster told CNBC. The lower-than-expected guidance the e-commerce giant provided may just be an attempt to temper expectations amid Amazon's CEO transition, he said.

"No one is going to compete with Amazon," Munster emphasized. Less than 15% of purchases are online and that number is going to continue to increase, he said. 

Amazon has about 1.2 million employees, which creates a huge opportunity to implement automation and, in turn, increase margins, Munster added.

AMZN Price Action: Amazon has traded as high as $3,773.08 and as low as $2,871 over a 52-week period.

At last check Monday, the stock was up 0.051% at $3,329.29.

Photo: Courtesy of Amazon.

Posted In: CNBCe-commerceGene MunsterSquawk BoxLong IdeasTechMediaTrading Ideas

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