Amazon's annualized total return is 80%, far higher than the S&P 500's 16% total return.
Wald said that the trend of the bond market will also support the rise of Amazon's stock price.
“As long as the bond yield curve continues to level off, it should continue to encourage people to invest in growth stocks. I think Amazon will also enjoy this shareholder wind,” he said.
The 10-year 2-year bond yield differential fell to 26 basis points on Thursday, the lowest level since August 2007. Growth stocks generally outperform value stocks in a slower-growing environment—a reverse yield curve: short-term bond yields are higher than long-term bonds, often indicating a recession.
Mark Tepper, president of Strategic Wealth Partners, said Amazon would benefit from macro trends to fundamentals, with sales growth expected to push up Amazon's share price sharply.
“Prime membership service is definitely the biggest factor driving Amazon’s revenue growth.” Tepper said to “Trading Nation” on Thursday, “Prime Day is coming... Believe it or not, for Amazon, this day is actually better than’ Black Friday' and 'Cyber Monday' are even more important."
Amazon will open its annual member promotion day Prime Day next Monday. In Prime Day 2017, the company's sales increased by more than 60% year-on-year.
However, Tepper is worried about one thing related to Amazon's fundamentals.
He said, "I am now puzzled by the Prime saturation of the US market. Amazon's penetration rate in the US seems to be very high, so I am worried about the future growth space."
In April of this year, Amazon said it had more than 100 million Prime members. This is the first time the company has disclosed the number of Prime subscribers. (Lebang)