Just looking through his portfolio and note he’s purchased this stock. I cant get my head around how to value Amazon. Whats the best way to do it?
Klarman is NOT an equity investor. He primarily is involved in credit.
Nobody can give me a good way to value AMZN. It always includes some huge multiple on AWS and rest for free.
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Looks like a sum of the parts valuation with retail currently unprofitable due to ongoing expenditures. So people are making assumptions on the continued high growth of AWS and a high terminal multiple of this in 5 years. Google and Microsoft are investing heavily in this area too (web services) so margin pressures will be felt in future. Hard to value compared to a google or microsoft etc.
Price to sales looks attractive compared to the last 5 years. Could easily drop to sub 80 IMO or go the other way 
depends on sentiment.
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Klarman has been touted by Warren as one of the best equity value investors and has a concetrated portfolio of c8bn vs total assets of 30bn I think so not unsubstantial.
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He is an equity investor.
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