Amazon just posted its highest operating margin ever, yet the stock tanked in premarket trading. The reason comes down to one number buried in the cash flow statement that has investors questioning whether the growth story holds up.
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Fresh results from Amazon (NASDAQ:AMZN | AMZN Price Prediction) show an operating margin of 13.9%, the highest in its history. Even so, the stock was down 6.72% in Friday premarket trading at $227.40.
The number investors keep coming back to is a trailing 12-month free cash outflow of $42.4 billion, driven by AI infrastructure spending. Amazon’s 24/7 Wall St. price target sits at $377.20. That means 54.72% upside from Thursday’s close and 65.9% from the premarket…
