Amazon.com has delivered a powerful 3 year run, and with the stock last closing at US$259.92 the question now is whether that price still lines up with the cash flows the business can generate. Recent AI spending, insider share sales and fresh investment commitments keep the story moving, but they also put fresh focus on what the cash flow math really supports.
Amazon.com has returned 97.2% over the past 3 years, which puts a lot of investor expectations about future cash generation on the line.
The multi year AWS deal with Synopsys, tied to custom chip design and AI data centers, may support future cloud cash flows while also adding upfront investment needs that matter for any Discounted Cash Flow (DCF) view.
What if you looked at Amazon.com through its earnings instead? See what Amazon.com’s 20.7x P/E says about the price.
The issue now is whether Amazon.com’s current share price can be explained by the cash flows that investors…
https://finance.yahoo.com/markets/stocks/articles/amazon-amzn-stock-could-undervalued-051410602.html
