Following 2020’s outsized gains, the 2021 stock market has been less of a thrill for Amazon (AMZN) stock. It has been a choppy performance so far, and Amazon stock has dilly dallied in both directions without a conclusive move either way.
In fact, the depressed performance, says Jefferies’ Brett Thill means Amazon stock is now trading at a historically low EV/EBITDA multiple. This presents opportunity, as given the pandemic-led changes in consumer habits which have driven “permanent increase” in e-commerce adoption, Thill argues the stock is underperforming despite a fundamental outlook “that is arguably better than ever.”
It’s a conclusion reached following a recent Jefferies survey on consumers’ spending habits. The survey found that 60% of those questioned were shopping more online since the pandemic’s onset. Even after the easing of restrictions, 63% among those have ramped up their online spending, while only 15% have reduced their online shopping habits.
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