$Amazon.com(AMZN)$ I think val

$Amazon.com(AMZN)$ I think valuing them based on their operating income rather than their cash flow is the wrong way to look at it.

They have such high depreciation from their investments (and pretty substantial stock based comp) that it makes more sense to look at it from a cash flow perspective which smooths those numbers out.

They are trading at around 16-17x operating cash flow now - which is about the cheapest it has ever been - and while valuations should condense as the company grows in size - their operating leverage should continue to increase.

Keep in mind that Amazon growing revenue at 11-12% is somewhat misleading in terms of profitability affects. AWS and Advertising account for so much of the company's profitability and they are growing much faster than 11-12%. I think it has a good chance to go substantially higher from here.

I am buying every share I can get my hands on.

Cheers.

Amazon Missed: Time to Bottom or Sell?

Amazon shares slide on revenue miss, disappointing guidance for third quarter. Amazon reported weaker-than-expected revenue for the second quarter and issued a disappointing forecast for the current period. Amazon’s cloud business exceeded analyst estimates, but it’s advertising unit came up short.

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AWS and Advertising account for so much of the company's profitability and they are growing much faster than 11-12%. I think it has a good chance to go substantially higher from here.I am buying every share I can get my hands on.Cheers.<img src=\"https://community-static.tradeup.com/news/87fe4064a391af61f12cc7e3c8b43fc4\" tg-width=\"356\" tg-height=\"200\"></body></html>","htmlText":"<html><head></head><body><a data-mention-id=\"AMZN\" class=\"teditor-mention\" data-mention-name=\"Amazon.com\" href=\"https://ttm.financial/S/AMZN\">$Amazon.com(AMZN)$</a> <v-v data-views=\"1\"></v-v>I think valuing them based on their operating income rather than their cash flow is the wrong way to look at it.They have such high depreciation from their investments (and pretty substantial stock based comp) that it makes more sense to look at it from a cash flow perspective which smooths those numbers out.They are trading at around 16-17x operating cash flow now - which is about the cheapest it has ever been - and while valuations should condense as the company grows in size - their operating leverage should continue to increase.Keep in mind that Amazon growing revenue at 11-12% is somewhat misleading in terms of profitability affects. AWS and Advertising account for so much of the company's profitability and they are growing much faster than 11-12%. I think it has a good chance to go substantially higher from here.I am buying every share I can get my hands on.Cheers.<img src=\"https://community-static.tradeup.com/news/87fe4064a391af61f12cc7e3c8b43fc4\" tg-width=\"356\" tg-height=\"200\"></body></html>","text":"$Amazon.com(AMZN)$ I think valuing them based on their operating income rather than their cash flow is the wrong way to look at it. They have such high depreciation from their investments (and pretty substantial stock based comp) that it makes more sense to look at it from a cash flow perspective which smooths those numbers out. They are trading at around 16-17x operating cash flow now - which is about the cheapest it has ever been - and while valuations should condense as the company grows in size - their operating leverage should continue to increase. Keep in mind that Amazon growing revenue at 11-12% is somewhat misleading in terms of profitability affects. AWS and Advertising account for so much of the company's profitability and they are growing much faster than 11-12%. I think it has a good chance to go substantially higher from here. I am buying every share I can get my hands on. Cheers.","highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/334132451274856","repostId":0,"isVote":1,"tweetType":1,"viewCount":825,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["AMZN"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":751,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/334132451274856"}