One of last year's top-performing stocks in the has plenty of runway left in 2016, according to S&P Capital IQ analyst Tuna Amobi.
Amazon shares have a shot at rising 15 percent or more over the next 12 months, thanks to a strong holiday season and rapid growth in its web services business, Amobi told CNBC's "Tech Bet" on Thursday in an interview.
The e-commerce giant reports fourth-quarter earnings after the bell Thursday. Amazon shares have dipped more than 9 percent so far in 2016.
"There's valuation concerns after last year's significant run-up in shares, but if you look at price to sales, which is our preferred metric, I think it's still relatively attractive to other Internet retail names," Amobi said.
Amobi said investors should monitor growth in Amazon's web services division, where he anticipates operating margins to grow between 20 and 30 percent from last quarter.
"That is one area that investors are watching closely as a major catalyst for Amazon," Amobi said.
He also said Amazon came off its strongest holiday season ever, by any metric.
Internationally, Amazon remains in "investment mode" as it attempts to ramp up its presence in India and China, Amobi said.
Gauging how much Amazon invests in one or more of its varied businesses — original video content, hardware, new delivery methods — remains a challenge for investors, Amobi said.
Amobi has a 12-month price target of $685 on Amazon shares.
Disclosure: Amobi does not own shares of Amazon.