Is AMZN stock lost its glitter?

Investment Analysis Clubs Liquid Lounge
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AMZN has performed relatively poorly. While the EPS is around $3, the cash flow from operations is $85 B or $8.25 per share. AMZN is still investing heavily, 2023 capex is $52.7 and has $85.6 B R&D budget. Can $AMSN optimize its investment and R&D Budget and start reducing share count and at some point pay dividend?

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Amazon is still the leader in cloud computing. Catalog sales has always been low margin.

Do you think they can be convinced to spinoff AWS?

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I don’t think it will happen during Andy Jassy’s tenure. Remember he was CEO of AWS, until he moved up to become Amazon CEO. May be someday.

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I’d be surprised if it ever happens. It is Amazons crown jewel. Spinning off their retail business is far more likely.

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AWS doesn’t require Amazon name, but rest of the organization requires Amazon name. Just saying. There was a period, if AWS was spun it would have fetched a much higher valuation, so you can justify that for unlocking value, but I really don’t see a catalyst. The stock split took care of RSU’s for AWS employees. I don’t see a catalyst.

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I was thinking about it during my walk. Amazon ex-AWS is $483 B in revenue. How long Governments going to be happy with few multi-trillion $$$ market cap companies having absolute control? Be it Amazon or Apple or Google they all are monopolies in the sense they act and behave like monopolies. Apple app store is ridiculous $100 B business. What exactly the APP store provides to earn such a huge revenue? Amazon’s market place vs Amazon seller conflict of interest is well documented.

I am a fan Lina Khan. Congress is too much in the pockets of these big corporations. I know Amazon’s ability to control the supply chain is beneficial to customers is well documents, but still…

I think at some point either US or EU is going to do something about this. Spinning off AWS doesn’t address that, so if Amzon is split, we need to think beyond AWS.

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I would own msft. 35% net income margins

amzn is massive, low margin e-commerce and logistics business attached to great AWS cloud business.

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