The Market Marked AMZN Stock Down. The Numbers Push Back

Amazon.com’s stock has slipped despite appearing cheaper on traditional trailing metrics, according to the analysis. The article notes AMZN trades at 20.6 times trailing unadjusted earnings versus a 23.2 median for the S&P 500, but argues that the discount is distorted by accounting effects: trailing twelve-month net income includes $80.4 billion in non-operating gains, including $53.4 billion in the June quarter. Removing those one-offs, it estimates Amazon trades at about 38 times normalized earnings. It cites revenue growth of 15.8% over 12 months and an operating cash flow margin of 21%, while warning that cash flow has turned negative at free cash flow of -$11.6 billion.