Shares of Amazon.com Inc (NASDAQ: AMZN) are down about 3.0% on Friday after the tech giant disappointed investors with its Q3 financial results late last night. Aureus Asset Management’s Karen Firestone, however, treated the dip as a buying opportunity.
Reasons why Firestone is bullish on Amazon
Firestone added to her position in Amazon this morning, citing expected strength in the coming holiday season. Defending her move on CNBC’s “Halftime Report”, she said:
Amazon is making every commitment they can to ensure that there’s going to be delivery to customers in the holiday season, and not snags and supply chain problems. They talked about it on the call.
Other reasons she’s bullish on Amazon included its cloud business that continued to shine in the recently reported quarter. Sales from AWS were up 39% on a year-over-year basis.
Firestone disagrees with Jim Cramer
Firestone also disagreed with Cramer, who said Apple was a better pick than Amazon after both companies reported earnings last night. She admitted that Amazon had a “whole host of issues” but said:
Amazon has the advantage of being the largest in their vertical. When you think of retail and the holiday season, there’s nobody that can compete with Amazon in terms of everything related to supplying to the customers. And that’s what they’re investing in right now.
According to Firestone, Amazon has more upside in the near term compared to Apple Inc since it has underperformed for the better part of this year. AMZN is down over 10% from its year-to-date high in early July.
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