Amazon trades at a P/E of 21. At first glance, that makes the stock look cheap.
But about 40% of pre-tax income over the last twelve months did not come from retail, advertising or the cloud, but mainly from the upward revaluation of its stake in Anthropic. Without these book gains, the P/E is about 35 by my calculation.
At the same time, Amazon is investing more than the business brings in: free cash flow over the last twelve months stands at minus $42 billion.
My Alien Analyzer caught the distortion on its own and flags the fair value as "distorted". The full analysis after the Q3 results:
https://alien-investor.org/en/amazon-amzn-analyse.html
Data: price as of Nov 6, 2026, figures through Sep 30, 2026. Disclosure: I hold shares of Amazon and receive royalties for my books via Amazon KDP. Not investment advice.
#Amazon #AMZN #StockAnalysis #Anthropic #Investing
But about 40% of pre-tax income over the last twelve months did not come from retail, advertising or the cloud, but mainly from the upward revaluation of its stake in Anthropic. Without these book gains, the P/E is about 35 by my calculation.
At the same time, Amazon is investing more than the business brings in: free cash flow over the last twelve months stands at minus $42 billion.
My Alien Analyzer caught the distortion on its own and flags the fair value as "distorted". The full analysis after the Q3 results:
https://alien-investor.org/en/amazon-amzn-analyse.html
Data: price as of Nov 6, 2026, figures through Sep 30, 2026. Disclosure: I hold shares of Amazon and receive royalties for my books via Amazon KDP. Not investment advice.
#Amazon #AMZN #StockAnalysis #Anthropic #Investing