Tis the season for Amazon (AMZN) to shine as Cyber-Monday and the Christmas shopping season approach. Nevertheless, it’s the company’s cloud computing division – not its massive retail operation – that makes the stock so attractive, said Robert Sharps, portfolio manager for the T. Rowe Price Large Cap Growth Fund (TRLGX). ‘We think Amazon Web Services will do about $8 billion in revenue this year and it was growing in the most recent quarter well north of 50% with 20% margins,’ said Sharps. ‘It’s a huge market opportunity over time and we think they have a long lead on the competition.’ Sharps added that he believes over the next few years that cloud computing business alone will be able to justify a value that approaches the current enterprise value of the entire company. Shares of Amazon have surged over 112% thus far in 2015. The T. Rowe Price Large Cap Growth Fund is up 8% year-to-date, according to fund-tracker Morningstar. The fund is currently outperforming 90% of its peers in Morningstar’s large growth category. Sharps is also bullish on Alphabet (GOOGL), which has seen its stock jump over 42% this year. He applauded the company’s plans to better disclose its extra-curricular activities like self-driving cars in the coming year in an effort to give Wall Street more clarity about the company’s operations.
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