Amazon is focusing its investments on spurring growth over the long-term, Sanderson noted. As a result, investors should not be as concerned with current profits until its investment opportunities become "more limited" or riskier.
He also argues that Amazon is firing on all cylinders as it relates to its retail efforts, adding that is has a "massive global retail [total addressable market]" and a "large margin opportunity."
It also maintains a leadership position in the cloud computing space via Amazon Web Services (AWS), Sanderson noted.
He reiterated his "Buy" rating on the e-commerce giant's stock with a $1,275 price target.
Shares of Amazon were climbing nearly 1% higher in Wednesday morning trading.
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