Why Amazon stock is a buy now

Amazon lays bare the benefits of having a diverse business. Even in a difficult economic environment, the company managed to deliver 15% top-line growth in Q3 with $127 billion in total revenue

The company's guidance for the fourth quarter suggests there might be weakness ahead at the most important time of the year -- the holidays. That spooked investors who were quick to sell Amazon stock, but since it has declined by 51% from its all-time high, this could be a great chance to buy in now

Amazon's cash flow. Though earnings per share is a common tool used by investors to value publicly traded companies, it works poorly with Amazon, given that the company reinvests most of its operating cash flow back into the business. During the 2010s, investors willingly paid a median end-year multiple of 30 times cash flow to own Amazon stock. You can buy shares today for about 9 times Wall Street's forecast cash flow for the company in 2025. That's incredibly cheap for a winner like Amazon.