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Amazon.com Inc (AMZN) has significantly underperformed the broader market since November of 2021 but much of that pain, as per Mark Mahaney (Evercore ISI), is now in the rearview mirror.

Mahaney’s bull case for Amazon shares

Down more than 30% for the year, the analyst dubs Amazon shares a “buy” not just as an investment but as a trade as well. Making a bull case on CNBC’s “Closing Bell”, he said:

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Online retail was the first hit earlier this year because of inflation and demand shocks. That means they’ll probably be the first out. So, I think revenue growth can accelerate from here at Amazon.com Inc.

Mahaney expects Amazon to do well as fuel, shipping, and labour costs continue to ease in the coming months. His constructive view matches the Wall Street at large that also recommends buying Amazon shares here.

Amazon has the best mix shift in tech

In July, Amazon reported a 33% year-on-year increase in its quarterly cloud revenue. Advertising also climbed 18%.

The two businesses known particularly for rapid growth is why Mahaney sees weakness as an opportunity to build a position or increase exposure to Amazon shares.

I like the setup in Amazon. The fastest growing parts of the business, advertising and AWS, are the highest margin, best mix shift story. So, you want to be long Amazon as trade and as an investment.

AMZN is currently trading a little above its year-to-date low.

Last month, the multinational expanded on its “green” ambition and announced a deal with Plug Power Inc – a Latham-headquartered producer of hydrogen fuel cell systems.

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