“I Tested FAST Graphs' New AI on Amazon (AMZN) | Partner Series ft. Growth Curve Investing”
Amazon's operating thesis is strong, but the stock price already discounts substantial execution; valuation on price-to-operating-cash-flow looks cheap but may not be as cheap as it seems due to capex sensitivity of free cash flow.
Amazon is my largest investment, and right now, on a price-to-operating-cash-flow basis, it looks cheap, but it may not be as cheap as I think
Amazon's operating thesis remains strong, but the stock price already discounts substantial execution. Growth in AWS, advertising, and AI-related growth. These are the things that I'm a big fan of myself.
The balance sheet is robust, while free cash flow is more sensitive to capital expenditures than the headline operating cash flow suggests. So, that right there makes me think instead of just looking at it on a price to operating cash flow basis, I need to now start thinking about free cash flow with Amazon because of their big investment cycle. So, that right there is interesting to me.