What happened

Shares of Amazon (AMZN -2.22%) climbed higher Tuesday morning, adding as much as 6.1%. As of 12:53 p.m. ET, the stock was still up 5.2%.

The broader markets rallied Tuesday, which no doubt added fuel to its rise, but another catalyst that helped send the e-commerce giant higher was some bullish commentary by an analyst.

So what

Despite the challenges wrought by current macroeconomic conditions, JPMorgan analyst Doug Anmuth noted "increasing interest in select names" across the internet group, as the recent market plunge has resulted in a number of compelling stock buys. One such opportunity is Amazon, which remains his "best idea" in the sector. 

Even with the macro backdrop, unfavorable exchange rates, and the overall underperformance of internet-related stocks, the analyst expects Amazon to deliver acceleration of its year-over-year revenue growth, margin expansion, and slower capital spending, which will combine to drive "significant" free cash flow growth into next year.

In an unrelated, note, Bank of America analyst Justin Post lowered his price targets on both Meta Platforms and Alphabet, citing increasing pressure from Amazon, as the company becomes a growing force in digital advertising. 

Now what

Both analysts make good points. Investors had largely written off any future growth by Amazon, following the company's significant e-commerce gains during the pandemic. However, Amazon CFO Brian Olsavsky said during the second-quarter earnings call that the company had lapped this high-growth period, which should lead to easier comps and higher year-over-year growth rates going forward. 

Additionally, Amazon is quickly becoming a powerhouse in digital advertising, as its ad revenue grew roughly 21% year over year during the trailing-12-month period, accelerating even as Alphabet's ad growth slowed and Meta's declined. 

Finally, Amazon is selling for a song, at roughly 2 times next year's sales, near the company's cheapest valuation in more than seven years.

Given Amazon's dominant position in e-commerce and cloud computing, growing prominence in digital advertising, and bargain-basement price tag, Amazon stock is a clear buy.