Apparently Amazon is a “Really Good Buy Right Now”

Amazon shares have been on fire this year and have seen gains of 30%, yet according to RBC Capital Markets, there could be more in store.

Lead internet and tech analyst Mark Mahaney told CNBC on Monay that Amazong shares are a really good buy right now.

He said on “Squawk Box,” “Amazon now trades at about 18 times cash flow. It’s actually one of the cheapest entry points you could buy Amazon over the past 10 years.”

“Netflix is a stretch valuation. It has been for a long time. We only see small, single-digit upside to the price target,” he said. “It’s not one of our top picks here,” he remarked. Netflix has seen gains of 27% YTD though.

One of Mahaney’s top picks was also Facebook. He said, “I think [it] still gives you more than 20 percent upside between now and the year of the year.” Facebook is also up about 30% this year so far.

“I won’t want to tell you to back up the truck on Facebook,” Mahaney explained. “I think the risk-reward is interesting. But there’s been more interesting entry points in the past.

He also added some caution and said that tech stocks “can certainly lead it down” as they have been leading the market higher recently. He said, “We’re at a point where a correction in those stocks would bring the market down.”

Disclaimer: We have no position in Amazon.com, Inc. (NASDAQ: AMZN) and have not been compensated for this article.

Sofia Vida

Sofia has been writing for major news outlets for over 15 years. In her spare time she enjoys hiking, walking her dogs, and going to concerts.

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