After fell nearly 40% in first half, how cheap is Amazon now?

During the first half of 2022, Amazon fell 36.29%, the second worst among FAAMG.

According to MarketWatch, Amazon's stock is now very cheap for it trades at its lowest level to forward sales estimates since March 2016, far lower than Microsoft's 8.3 times, and even lower than 2.1 times of SMaxP 500.

Moreover, the forward price-to-cash flow ratios for Amaozn is now at 13.8, which exceeds the index’s ratio of 12.2, but still far lower than Microsoft’s 18.2.

In the meantime, Wall Street is confident about Amazon Web Services, which reported $62.2 billion in revenue in 2021, accounted for 13% of the company's total revenue.

Redburn said in a report that AWS could be headed to a value of $3 trillion, nearly three times what the entire company is worth. The reason is simply enough: AWS division has driven the company's market share growth in almost every area.

However, there is still one thing worth noting. As Ken Laudan of Kornitzer Capital Management wrote in an email, Amazon “spent as much on capex in two years as it did in the preceding 20 years."