Key insights
- The author argues Amazon's current market cap undervalues its AI infrastructure leadership through AWS and its stake in Anthropic. Re-acceleration in AWS, growth in advertising, and expanding retail margins are cited as drivers for future growth. The author believes Amazon's AI capabilities and optionality are not fully reflected in its valuation, suggesting a bullish outlook for the stock.
Amazon has quietly become one of the two or three most important AI infrastructure companies in the world, and financial models haven’t properly priced that in. AWS is re-accelerating. Advertising is compounding. Retail margins are expanding. The balance sheet features a large equity stake in Anthropic, representing one of the most remarkable pieces of financial optionality in public market history.
The $2.5 trillion market cap is too low. Here’s why.
https://open.substack.com/pub/philip370/p/amazon-the-25-trillion-mispricing?r=nuqc6&utm\_medium=ios
Feel free to critique my thesis. I have high conviction in both Amazon + Anthropic due to industry experience.
Not financial advice!