Big tech stocks worked fantastically well in the first half of 2023. Can shares of Apple, Amazon. com, Nvidia, and the rest of the magnificent seven keep it up? For Wells Fargo, the answer in the case of Amazon is an unqualified yes.
SOTP valuations look at the value of all the different businesses inside a company, evaluating them separately to see if there is a big difference between the value of the individual units and the overall company. Sometimes investors are more attuned to SOTP math than others. Now is one of those times.
Amazon does a lot more than just e-commerce. It’s a prime candidate (get it) for SOTP math. The Edge Research founder, and special situations analyst, Jim Osman says Amazon stock could be worth up to $200 in a breakup scenario, up about 56% from recent levels.