Lot of debate on $Amazon(AMZN.US) (-3%) which is down today for two main reasons: 1/ Online growth continues to deceler…
Lot of debate on $Amazon(AMZN.US) (-3%) which is down today for two main reasons: 1/ Online growth continues to decelerate sharply (+2% YoY - slowest since 2023/1Q) and 2/ Much higher than expected CapEx (3Q $77.3B vs $58.8B exp; FY 2026 CapEx guidance held at $220B). IMO, the CapEx arms race without being able to show compelling returns until early-to-mid 2027 is the main issue holding back investors from buying the $Amazon(AMZN.US) dip.
On valuation, AMZN looks cheap at a 2027 P/E of 22.1x (EV/EBITDA 9.2x) vs 15% long-term rev growth and eps growth.The copyright of this article belongs to the original author/organization.
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