I continue to buy the dip in 5 out of the Mag7 companies. They are called magnificent for a reason, I went into depth into every company in my earlier post about the Mag7 and expanded on the thought that this selloff could be a huge opportunity to start building up a stake in these highly profitable businesses.
Amazon for example isn’t the online book store Jeff Bezos invented in his garage anymore, no, it is so much more now. While e-commerce still accounts for the lion’s share of the company’s enormous revenue, similar to $GOOGL (+0,29 %) Amazon is expanding in other areas.
AWS is the cloud leader and dominates this sector ahead of its two main competitors $MSFT (+1,32 %) and $GOOGL (+0,29 %) . Other promising ventures are Prime Video, which disappointed over years in terms of lacking behind $NFLX (+1,48 %) , but it has the potential and the resources to close the respective gap between these two streaming providers.
And then there is the massive opportunity, nobody seems to talk about: Amazon entering the healthcare space. Similar to what $HIMS (+24,47 %) tries to achieve but on a much bigger scale, since Amazon has the resources and platforms to advertise and roll this out effectively.
Amazon is currently trading at a forward P/E ratio of around 30 (similar to $MSFT (+1,32 %) ), and it should be noted that until the recent selloff Amazon’s stock has always traded correspondingly to its EPS growth. So, while it isn’t necessarily a bargain like $GOOGL (+0,29 %) it‘s a very attractive entry point for this giant that still has much potential ahead.
