Tsesna Capital’s investment idea at www.forbes.kz: How the Kazakhstanis could cash in on Amazon

wednesday 2017-02-22 10:30

In a situation when tenge is stabilizing and investment opportunities in securities denominated in dollars are limited in Kazakhstan, it may be a good time to analyze the most promising areas of the international investment. Analyst of Tsesna Capital JSC Darkhan Lukpanov gives recommendations for the purchase of shares of the American company Amazon.

With Donald Trump coming to power in the US, the investors' optimism about the prospects of the technological sector was slightly muted. The politics of the new president hints at some deglobalization, which negatively affects the industry. However, the strength of the fundamental indicators of the technological sector is known to many people and for a long time.

Amazon is an interesting investment because it has two important characteristics:

  • Significant growth potential inherent in the technological sector leaders, especially on cloud technology
  • Resilience toward Trump’s politics, fears of the American deglobalization may be partially or fully overcome for AMZN through growth of selective consumer goods sector expecting expansion considering future economic growth and Trump’s fiscal incentives.

AMZN is represented (58% of earnings) in one of the most marginal IT sectors with Amazon Web Services (AWS) product- cloud servers. It looks especially attractive against the US corporate profits trend that reached bull’s phase (growth phase) starting from the end of 2016. The company’s cloud business is rapidly developing. Last quarter this business area of the AMZN grew 60%, while the margin is maintained at 30% level.

Read more at: https://forbes.kz/finances/finance/kak_kazahstantsyi_mogut_zarabotat_na_amazon

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