Amazon.com Inc (NASDAQ: AMZN) is being a nightmare for its shareholders in 2022, now down more than 35% year-to-date. Still, the CEO of Defiance ETFs remains strongly bullish on the stock.
Jablonski explains why she likes Amazon stock
Sylvia Jablonski attributes the hit to Amazon in its recent quarter partially to a broader weakness in retail. Commenting on the company-specific issues, she said on CNBC’s “Squawk Box”:
A lot of the issues are resolvable. Amazon is talking about creating efficiencies where they’ve built up inventory. They have too much staff, so they’re going to have to sort that out. They had the write-off on electric vehicles, that will change.
Retail earnings this week, especially of Walmart and Target, bolster her thesis that inflation is hitting the sector at large. Jablonski liked AMZN even at $3,500. At the current discount, she says it’s a treat.
Jablonski is bullish on Amazon’s cloud business
Jablonski is convinced that Amazon has pricing power but her bullish view on the stock is primarily related to AWS (cloud business). Speaking with CNBC’s Becky Quick, she said:
Cloud growth is absolutely stellar. Consumer discretionary sales are down but they’re strong enough to sustain if they cut costs and create those efficiencies. Amazon has pricing power and the long-term prospects for cloud are huge.
Earlier this month, Gina Sanchez also said that Amazon will have the last laugh. The retail giant is scheduled for its annual Prime Day in July this year, which will likely boost its consumer segment in the current fiscal quarter.
The post Jablonski is bullish on Amazon: ‘a lot of the issues are resolvable’ appeared first on Invezz.