Jefferies Q3 Preview: Margin Compression on Everyone's Mind; Can AMZN Deliver?

$Amazon (AMZN.US)$ N-T set up looks challenging as investors fear Q4 EBIT guide will miss cons. due to weak consumer and AWS compression from record 1H mgns. Also, stock has rebounded since Q2 earnings and is beating GOOGL & MSFT YTD. We think mgn fears are overblown as cost discipline continue under CEO Jassy, high-mgn AWS and Advertising outgrow retail, and macro is stable. Valuation attractive at 12.1x EV/EBITDA-NTM vs. 10-yr avg 19.2x. Continue to like AMZN L-T, Buy, $225 PT.