There is a “huge amount of benefit” for Amazon.com, Inc. (NASDAQ: AMZN), Evercore ISI analyst Mark Mahaney told CNBC on Friday.
The action has been limited for the past six to nine months, the analyst said on CNBC’s “Squawk Box”.
Amazon is “the best thing on the internet,” and it’s the one you want to own, Mahaney said.
Basically, Amazon is an extremely strong asset, which the market recognizes, he said – but the Evercore analyst expects a technical breakthrough in the near future.
Amazon Web Services: Demand for cloud computing has accelerated throughout the COVID-19 pandemic.
AWS’s margins are higher than in Amazon’s core business, Mahaney said.
Amazon’s margins will continue to rise and Amazon will continue to do everything possible to invest in new areas of growth, the analyst said.
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Amazon regulatory risk: Mahaney said he expects Amazon to be more under scrutiny as it becomes the largest employer in the United States over the next three years.
There has been pressure on the company in terms of salary practices, but the analyst said regulatory risk is relatively limited.
“I haven’t seen anything that suggests there will be a short-term negative impact on earnings,” he said.
AMZN price action: Amazon shares were trading up 1.73% at $ 3,356.39 on the last check on Friday.
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