All five FAANG stocks have now reported their results for this quarter, and for Evercore ISI’s Mark Mahaney, the worst is behind one of the tech giants. That’s Amazon, which posted an overall loss of $2 billion for the quarter ending in June. The company was hit by a $3.9 billion loss from its Rivian stake.

“Amazon reported better-than-expected June quarter results and then issued guidance for the September quarter that was more or less in line with expectations,” Mahaney, director of Internet research at Evercore ISI, told “Squawk Box.” Asia” on CNBC on Friday. He noted that faced with the risk of a global recession, Amazon is likely to lower its forecasts.

Investors were encouraged by Amazon’s upbeat outlook, which indicated consumer demand was still resilient and came despite a deteriorating outlook for US consumer confidence. This leaves Mahaney optimistic that the worst is over for Amazon, as he says the company is “doing very well.” He forecasts accelerating sales growth and margin expansion in the second half of the year despite inflation headwinds.

“They’re bringing out really good product initiatives… They’ve sped up delivery and increased their inventory. I think that increased customer satisfaction and made Prime customers buy more,” he added, noting that the company outperformed other retailers this quarter.

Mahaney also pointed to the continued growth of the Amazon Web Services cloud computing service and its advertising business. “These are higher margin businesses that are growing faster than the core retail business, which will have a wonderful impact on margins. This revenue shift toward higher-margin, faster-growing businesses is a positive,” she said.

“I like Amazon and I think it can continue to recover. There are many things that have not gone well yet. Markets have yet to fully recover and international trade margins are still weak. I think this will improve in the next 12 months. The fundamentals will improve, so there is still a lot of room for improvement for both the company and the stock,” he added.