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5 Reasons Amazon Stock Is a Buy Now

By Eric Cuka – Dec 17, 2021 at 10:00AM

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AMZN stock has been a 2021 laggard, but can this behemoth help your portfolio outperform in 2022?

In its recent quarter, Amazon (AMZN -1.37%) missed on both top and bottom lines and provided fourth-quarter guidance that was below consensus estimates. Amazon's CEO, Andy Jassy, discussed on the recent earnings call that he expects "several billion dollars" of additional costs for the fourth quarter related to higher employee costs, supply chain contrasts, labor shortages, and overall increased cost of goods sold. 

Amazon undeniably had a rough past quarter, but it is outperforming its peers this holiday season, and I believe the stock is poised for outperformance in 2022.

In the video below, I go into more detail, but from a high level, here are the five primary reasons the stock should rebound in 2022:

  1. Record holiday sales
  2. Amazon Web Services (AWS)
  3. Amazon Marketplace
  4. Infrastructure and employees
  5. Lagging performance is historically part of a trend

For more details and my opinion on the stock price and where I think it's headed in 2022, please watch the below video and subscribe for more.

*Stock prices used in the below video were during the trading day of Dec. 16, 2021. The video was published on Dec. 16, 2021.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Cuka owns Amazon. The Motley Fool owns and recommends Amazon. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policyEric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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