By: Dividend Sensei
Amazon has gone nowhere for 13 months, underperforming all other FAANG stocks by massive amounts.
Amazon’s earnings on October 28th are likely to be outstanding, and the price might fall as much as 7%.
Rising long-term interest rates could create a short-term headwind for tech, and cause Amazon to trade flat for even longer.
None of these things matter to smart long-term investors, who have a chance to buy this Buffett blue-chip bargain at 20.8X cash flow. The last time it was this cheap in early 2016 investors made 520% in the next five years.
Today analysts expect 24% to 29% CAGR returns from Amazon over the next five years, and potentially 32% in the long-term. Its risk-adjusted expected returns are almost 6X that of the S&P 500 making it as close to a perfect growth investment as exists on Wall Street, and the single best Buffett blue-chip bargain you can buy.