The Narrative

By the numbers

Market cap: 1.6T PE Ratio: 82

Looking back at Q3 2023 Earnings

Net sales - up 13% Y/Y, up 10% TTM (trailing twelve months) In December 2023, amazon 570B revenue (2.67 Fwd P/S) Analyst consensus: 1.08T revenue by 2029, so roughly 10% growth YoY. (these are linear projections, so may be slightly overshooting)

Net income TTM - up 77% Y/Y, at 20B Long term goals

1. Optimize free cash flow - 21B in 2023 TTM
2. Reduce dilution - new shares issued up 2% in 2023

Amazon invests ~50B in capex per year, and has been for the past 5 years. This is a good sign that they are investing in the future. As such, it should be valued off P/OCF (price to operating cash flow) instead of P/E.

AWS

AI Workloads

Retail

Consumer sentiment toward spending