Opinion: Amazon’s stock price has slumped almost 34% this year. This money manager says it’s a steal and could surge 76% to $3,900 in 2 years

The stock market is a funny place: When great businesses go on sale, most people don’t rejoice. Instead they freak out. This presents an excellent opportunity for long-term investors who keep their wits about them and triangulate between price and value.

As I perform my own triangulations, I find many tech stocks on sale today, though in this market, as in any market, one must discriminate. Some in the group are worth a look, while others deserve to be crushed. The reason is simple: Like companies in any other industry, most tech companies are doomed to failure, or at least mediocrity, by the viciously corrosive nature of free-market capitalism.

Only companies with moats, to use Warren Buffett’s famous and accurate metaphor, can withstand the intense competition it begets.

For this reason, the key to unlocking successful tech investments remains the same as it has in all previous generations. We must identify, buy, and hold companies with competitive advantages that will allow them to thrive while others languish.

is one such company. Down almost 34% in 2022 through Monday, I believe it represents an excellent long-term investment at Monday’s closing price of $2,216.21.

Here’s why:

Even the biggest skeptic will concede that Amazon has large and formidable moats around both its major businesses. Its original business, e-commerce, commands nearly 50% of all online retail traffic, and nobody comes close to matching its mix of selection, price and convenience plus its vast distribution network.

The company’s cloud platform, Amazon Web Services, has a similarly dominant market share of outsourced computing. And while AWS’s core business is renting out “dumb servers,” it bundles that commodity with a suite of powerful software and analytics tools that gradually become embedded in customers’ everyday business processes. This gives AWS a Prime-like stickiness.

Amazon’s moats are therefore beyond any reasonable doubt. The more…

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