At first glance, Amazon (AMZN 0.21%) shares don’t look cheap. The stock trades at about 35 times earnings as of this writing and about 31 times forward earnings. That is not exactly a bargain multiple for a company in the middle of one of the biggest spending cycles in its history as the era of artificial intelligence (AI) unfolds.
But I think that lens misses several important parts of the bull case for the stock. Indeed, I think the valuation is cheaper than it appears on the surface, once you consider Amazon’s momentum in key segments and its attractive price-to-operating cash flow multiple.
Imag source: Getty Images.
Accelerating momentum
First, investors should consider the impressive trajectory of Amazon’s business.
The company’s fourth-quarter consolidated net sales rose 14% year over year to $213.4 billion, and revenue from Amazon Web Services (AWS), or its cloud computing business, increased 24% to $35.6 billion — an acceleration from 20% growth in the third…
https://www.fool.com/investing/2026/04/15/prediction-this-will-be-amazons-stock-price-in-1-y/
