Why You Should Be Optimistic in Amazon.com’s (AMZN) Outlook?

3 weeks ago 9

Soumya Eswaran

Mon, July 20, 2026 astatine 8:33 AM CDT 4 min read

L1 Capital, an concern absorption firm, released its "L1 Capital International Fund" (unhedged) second-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. The missive discusses the existent concern situation arsenic a 'two-speed' but resilient planetary economy, accompanied by an uncertain future. The missive explores the imaginable of an AI bubble, distinguishing betwixt beardown fundamentals and speculative momentum. Additionally, the marketplace displays a 'narrow' character, marked by precocious exuberance and pronounced over-pessimism. Against this backdrop, the Fund returned +2.6% (net of fees) during the June 2026 quarter, compared to the benchmark instrumentality of +12.5% (all successful A$). The underperformance was driven much by which investments were not held successful the Fund. The Fund remains focused connected quality, valuation and the avoidance of imperishable superior loss, and believes the portfolio is positioned to present charismatic risk-adjusted returns for diligent investors. In addition, you tin cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, L1 Capital International Fund highlighted Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) is simply a multinational exertion and retail institution known for its starring online marketplace and unreality platform. On July 16, 2026, Amazon.com, Inc. (NASDAQ:AMZN) closed astatine $247.23 per share. One-month instrumentality of Amazon.com, Inc. (NASDAQ:AMZN) was 6.20%, and its shares gained 10.51% implicit the past 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a marketplace capitalization of $2.69 trillion.

L1 Capital International Fund stated the pursuing regarding Amazon.com, Inc. (NASDAQ:AMZN) successful its Q2 2026 capitalist update:

"At an idiosyncratic banal level, portion the Fund had much affirmative contributors than antagonistic detractors to returns, quarterly show was again mixed. Amazon.com contributed astir 1.0%. We stay excited by the outlook for Amazon.com, Inc. (NASDAQ:AMZN), some for the ecommerce concern and Amazon Web Services (AWS). Operational execution wrong ecommerce is consistently improving, and the June 2026 announcement to widen Amazon Freight services to the less-than-truckload marketplace conception is an denotation that absorption has capable comfortableness successful the operational show of the logistics web to further widen the level to 3rd parties.

We expect further increases successful AWS's superior expenditure which volition effect successful Amazon.com generating antagonistic escaped currency flow. We judge the marketplace remains overly focused connected near-term escaped currency travel and continues to underappreciate the longer-term structural accidental for the hyperscalers and the imaginable returns connected their AI-related superior investment. Amazon CEO Andy Jassy's Letter to Shareholders successful April 2026 is recommended reading, peculiarly his perspectives connected AI and however Amazon is being positioned for what helium considers to beryllium a 'seminal shift'. Jassy shed immoderate airy connected AWS's interior spot capabilities (particularly Graviton – CPU, and Trainium – GPU) which we judge stay under-appreciated, arsenic is the nearer word ramp successful AWS capacity. In our view, some the ecommerce flywheel and AWS stay underappreciated and undervalued."

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