Amazon Is Way Too Cheap


  • I do not believe that Amazon’s P/E ratio is a helpful measure, as its earnings are artificially low.
  • The true measure of Amazon’s valuation is its cash flow, specifically operating cash flow.
  • Amazon’s high-margin businesses, particularly AWS, are driving future revenue growth and profitability.


hapabapa, Inc. (NASDAQ:AMZN) has trailed the S&P 500 since its earnings release on 4/30. I believe investors are overlooking some key drivers of Amazon’s long-term performance and have left it trading below its historical averages. I want to keep this

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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