- We hold a neutral view for Amazon due to the following mixed considerations.
- Amazon is a stock that combines two rare traits – a dominating juggernaut yet still perfectly scalable.
- Amazon's accounting earnings underestimate its true earnings power, and its owners' earnings are significantly higher.
- Yet, AMZN stock's valuation is still elevated line even when its profitability and true earning power are accounted for.
- Amazon lease accounting brings further concern, and its free cash is heading in the wrong direction after adjusting for its financial leases.
https://seekingalpha.com/article/4496816-amazons-good-bad-and-ugly-in-4-charts