Amazon.com Inc (NASDAQ: AMZN) shareholders is surely not a happy lot at present, with the stock now down nearly 30% for the year. Still, the CEO of Chantico Global remains bullish on AMZN.
Sanchez is bullish on Amazon Web Services
Gina Sanchez continues to see signs of strength in Amazon even after the tech giant warned of a sizable operating loss in its current fiscal quarter. On CNBC’s “Worldwide Exchange”, she said:
Amazon.com Inc is quality. If you look deeper into its quarterly numbers, the cloud story is not going away. You are seeing tremendous growth continuing in Amazon Web Services, which is a big piece of their long-term story.
AWS brought in $18.44 billion in Q1, as per the earnings report that came out last week, versus $18.34 billion that experts had forecast. The stock now trades at a PE multiple of 58.22.
Sanchez expects online shopping to last
Amazon was a notable beneficiary of the COVID pandemic that accelerated the switch to online shopping. According to Sanchez, however, the trend is going to last. She noted:
Interesting thing is that no one’s going to stop ordering Amazon products. That’s here to stay. Right now, the market is looking for long-term quality and durability. So, in the end, I think Amazon.com Inc is going to have the last laugh.
Nevertheless, eCommerce remained in loss for Amazon in its recent fiscal quarter, both in the North American and internationally. The American multinational will launch its annual Prime Day sale this year in July.
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