Seeking Alpha
02 Nov 2026, 09:48 UTC · 1h ago
Amazon: Record Operating Profit. Strong Buy On The Selloff
Impact · against what's priced in
The record operating profit and AWS backlog provide fundamental support but do not fundamentally shift the valuation, as the market is already cautious about AI conversion and CapEx intensity. The news reinforces the bull case for AWS acceleration, but since the price currently declines to pay for this specific acceleration, the impact is moderately positive rather than a breakout catalyst.
- AMZN+0.20
Challenges what's priced in
- The price assumes
AWS sustaining 19.7% growth and expanding margins to justify a valuation the street places at $305 or higher
The $578 billion backlog and supply sold out through 2027 provide concrete evidence for the revenue acceleration that the market is currently refusing to price in.
What AMZN's price assumes · Sep 10
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