Amazon (AMZN) Trades at 24 Times Forward Earnings. Can Its Cash Engines Fund the Robotaxi Bet?

What happened: Amazon (AMZN) trades at about 24 times forward earnings while it funds its Zoox robotaxi business, with cloud and retail profits covering the spending. Key numbers: Q2 sales rose 20% to $200.6 billion; operating income rose 43% to $27.5 billion; AWS revenue rose 37% to $42.2 billion; operating cash flow was $161.4 billion over twelve months to June 30; Why it matters: Regulators approved Zoox to charge for rides, but the content says that does not prove profitable operations. Negative free cash flow makes a new purchase less compelling at this valuation, per the article.

Amazon (AMZN) trades at about 24 times forward earnings while it funds its Zoox robotaxi business, with cloud and retail profits covering the spending.

Regulators approved Zoox to charge for rides, but the content says that does not prove profitable operations. Negative free cash flow makes a new purchase less compelling at this valuation, per the article.