Amazon Surges to New Highs as Zacks Names it Bull of the Day
Amazon.com (AMZN) has emerged as Zacks' Bull of the Day following a strong quarterly earnings report, which boosted its investment case. The e-commerce and cloud-computing giant reported accelerating growth in AWS, expanded margins, and disclosed that its custom AI chip business has reached a $25 billion annualized revenue run rate.
The company's standout results shifted the narrative around AI capex from one centered on cost and free cash flow to one focused on monetization and earnings growth. Wall Street responded quickly by revising earnings estimates sharply higher, with next year's consensus estimate jumping 47.6% to $13.06 per share.
AMZN currently trades at a relatively modest valuation of 20.8x forward earnings, given its growth profile and improving profitability. The stock has surged nearly 25% in the days following earnings and is now on the verge of another breakout above $280.