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Amazon Q2 Preview: Can Prime Day Hype And AI-Fueled AWS Drive A Big Earnings Beat?
AmazonAmazon(US:AMZN) Seeking Alphaยท2025-07-28 15:06

Core Insights - The article emphasizes the importance of generating alpha through independent investment strategies, focusing on sectors with perceived potential against the S&P 500 [1] - A generalist approach is adopted, allowing for exploration and investment across various sectors, with typical holding periods ranging from a few quarters to multiple years [1] Research Methodology - The company maintains comprehensive spreadsheets that track historical financial data, key metrics, guidance trends, and performance indicators compared to consensus estimates [1] - In addition to company filings, relevant industry news and reports are monitored to provide a holistic view of the stock's performance [1] - A deep dive into leadership changes, particularly during CEO transitions, is conducted to assess the background and past performance of key leaders [1] Valuation Approach - The company rarely utilizes discounted cash flow (DCF) models for long-term projections, believing that assessing historical performance and key drivers of valuation is more valuable [1] - The five key drivers of DCF valuation considered are revenues, costs and margins, cash flow conversion, capital expenditures, and interest rates [1]