From Seeking Alpha:
[Y]ou have to like the situation Amazon is in thanks to the recently passed tax reform bill. Consumers are going to spend more and Prime memberships are going to keep surging. On the business front, companies are likely to plow some of their higher income back into technology, and that will certainly help AWS as it remains the cloud leader. A full year of Whole Foods revenue will keep Amazon’s top line growth rate at a decent clip.
For those that complain about the bottom line, something I used to do, the lower corporate tax rate is definitely welcome for Amazon. According to the company’s 10-K filing in early 2017, the company’s effective tax rate the past three years was 36.6%, 60.6%, and 150.4% (in 2014). Through the first nine months of 2017, the tax rate was over 37%. Likewise, Whole Foods had a high effective rate, so even an improvement of just a few percentage points could have a massive impact on earnings per share.
The second item I’m watching will be a series of positive analyst notes coming in the next few months as the street adjusts to the recent surge in shares. As you can see in the graphic below, 43 of 47 analysts currently have a buy or strong buy rating on the stock.
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The US tax reform bill will help fuel a mix of consumer and business spending, helping the retail business as well as AWS.
Link to the rest at Seeking Alpha
Weren’t the Tax Cuts supposed to be Armageddon? Lower prices, who would have thought of such possibility?