Amazon: The Market Is Overlooking This Fundamental Trend

Amazon (NASDAQ:AMZN) has seen a hefty pullback recently after guiding for slower growth in the third quarter. The market seems to be focusing on the e-commerce slowdown despite having another potential trillion-dollar business hiding within the company. We are referring to Amazon's real money maker, AWS which we covered recently in a previous article. We suggest taking a look if you're interested in learning more about AWS and why we think it's a major growth catalyst for the company. In addition, we cover the main risks involved in holding Amazon's stock. ​

However, today's article will not be focusing on AWS. Instead, we want to talk about what the market is potentially missing from the recent earnings call. In addition, we will take a look at Amazon's new plan to open up department stores and provide an updated valuation with recent numbers.
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Here are the main points of this report:  

• Amazon's post-earnings sell-off was an overreaction. 
• Amazon has dramatically increased its capital expenditures. 
• The company is trading at a discount to its intrinsic value. 

 
*This is a premium seeking alpha article, so we can’t fully post it here.*   ​

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