Amazon’s Former Highs Mean Nothing in This New Paradigm

Quick Read

• AWS grew 37% to $42 billion, its fastest growth in 18 quarters, and Andy Jassy sees it becoming a trillion-dollar annual revenue business.

• Amazon beats Walmart on growth rate and valuation, while AWS is accelerating faster than Azure despite Microsoft posting 43% cloud growth last quarter.

• Free cash flow turned negative as capex surged 68% to $54 billion, but operating cash flow still rose 40% to offset the concern.

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I have added to my Amazon (NASDAQ:AMZN) position after every recent earnings report, and I have no plans to stop. Some investors worry the stock got expensive reaching its old highs. To me, those highs were the price of an older company. The Amazon I own today rents, designs, and sells the computing power behind artificial intelligence, and it also runs a retail and advertising business.