Evercore ISI‘s Mark Mahaney sees upside for Amazon.com Inc (NASDAQ:AMZN) from current levels, and he has a history of being right about the trajectory of the tech stock.
What Happened: Tuesday on CNBC’s “Squawk Box,” Mahaney said Amazon is his top stock to own right now.
“One of my favorite stocks, actually my single favorite stock right here, is Amazon,” Mahaney said.
Tariffs and the impacts of the Trump administration’s ongoing trade war have weighed on big tech names and broader markets. Amazon shares are down about 7% year-to-date but have shown signs of bottoming in recent weeks.
Mahaney believes Amazon is better positioned to deal with potential negative impacts of tariffs than some of the other big tech names. He expects the company to eat some of the tariffs, which will hurt profitability, but also pass through some of the costs to consumers.
“As long as the tariffs are highly targeted and maybe modest in scope, there’s less risk for Amazon. And then there are other parts of the story that I find particularly interesting,” Mahaney said.
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The Evercore ISI analyst highlighted Amazon’s strong Amazon Web Services (AWS) growth outlook and planned new product rollouts including Project Kuiper and Amazon Alexa+.
The company said last quarter that AWS sales increased 19% year-over-year and helped generate $10.6 billion in operating income. Amazon also guided for first-quarter net sales growth of 5% to 9% year-over-year.
“So if you’ve got new product lines rolling out and potential for parts of the core business to accelerate and the stock has pulled back a lot -- Amazon at 25-times earnings is more attractive than pretty much any time I’ve ever seen it -- then that’s when you want to get in, leg into that stock aggressively, and I think that point it here with Amazon,” Mahaney said.
Mahaney has been a longtime bull on Amazon -- and he’s been right before. With Amazon shares trading around $140 in 2023, he predicted the stock would rise above $200 by the end of 2024 driven by accelerating growth from AI efficiencies. Amazon closed out 2024 trading around $220 per share, according to Benzinga Pro.
AMZN Price Action: Amazon shares were up 0.99% at $205.27 at the time of publication Tuesday, according to Benzinga Pro.
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Photo: courtesy of Amazon.
