Amazon.com has seen its stock power higher in recent years, and the question for investors now is whether the current share price is properly anchored to the cash the business can generate over time. With enthusiasm around artificial intelligence, logistics and cloud computing shaping expectations, the focus turns to what the underlying cash flows actually justify for Amazon.com today.
- Over the past 3 years, Amazon.com has delivered a 97.2% share price gain, which puts a lot of weight on whether its future cash generation can support that kind of market value.
- The recent multi year deal between Amazon Web Services and Synopsys to support custom chip design points to heavy, ongoing investment that can influence future cash flow timing, capital intensity and the value investors place on those streams.
- 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 the cash flows implied by Amazon.com’s…
