Summary

• Amazon delivered robust Q1 results with 17% revenue growth and strong EPS outperformance, signaling accelerating business momentum.
• AWS segment showed reaccelerating growth but still lags Azure and Google Cloud, while heavy CapEx pressures near-term FCF.
• Despite positive long-term drivers like in-house chips and Amazon Supply Chain Services, valuation remains less attractive versus hyperscaler peers.
• I reiterate AMZN a hold rating, as Alphabet and Microsoft offer better growth at lower relative valuations despite Amazon's market leadership and strategic initiatives.

At the end of February, I decided to reiterate my hold rating on Amazon.com, Inc. (AMZN). In that analysis, it was shown that the company was experiencing mixed performance while the valuation remained

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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