Amazon.com, Inc. (AMZN): A Bull Case Theory

We came across a bullish thesis on Amazon.com, Inc. on Accrued Interest’s Substack by Simeon McMillan. In this article, we will summarize the bulls’ thesis on AMZN. Amazon.com, Inc.'s share was trading at $220.71 as of September 23rd. AMZN’s trailing and forward P/E were 33.64 and 28.41 respectively according to Yahoo Finance.

Amazon (AMZN) recorded the strongest year-over-year growth among streaming services in August 2025, with viewership rising to 3.9%, a 26% increase from 3.1% in August 2024. This marked its highest monthly share since December 2024, when it briefly reached 4.0%. Over the past year, Amazon’s viewing share has consistently fluctuated within the 3% to 4% range, with no sustained breakout, but recent momentum signals a potential shift.

A key driver of this growth is Prime Video’s upcoming addition of NBA games as part of its partnership with the league, which could meaningfully expand its sports audience and strengthen engagement. At the same time, Amazon’s decision to introduce an ad-supported default tier is a notable differentiator in the competitive streaming landscape. By offering a lower-cost entry point compared to subscription-only services, Prime Video is positioned to draw in a broader audience, especially as consumer preferences increasingly lean toward ad-supported options.

This strategy not only enhances accessibility but also unlocks incremental advertising revenue opportunities, aligning Amazon with broader industry trends favoring hybrid monetization models. While historical patterns suggest that Amazon has yet to establish dominance beyond the 4% viewing-share threshold, the combination of live sports rights, pricing flexibility, and scalable ad-supported streaming creates a compelling case for continued growth. With these catalysts in place, Prime Video has the potential to accelerate its market share gains, positioning Amazon as a stronger competitor in the evolving streaming ecosystem.

Previously we covered a bullish thesis on Amazon.com, Inc. (AMZN) by FluentInQuality in May 2025, which highlighted the company’s AWS leadership, integrated logistics, advertising scale, and Prime-driven ecosystem as key growth engines. The company’s stock price has appreciated approximately by 5.8% since our coverage. The thesis still stands as Amazon remains a diversified digital economy platform. Simeon McMillan shares a similar view but emphasizes Prime Video’s growth, driven by NBA rights and the ad-supported default tier.

Amazon.com, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 335 hedge fund portfolios held AMZN at the end of the second quarter which was 328 in the previous quarter. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HGTY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.