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Amazon.com, Inc. (AMZN): A Bull Case Theory 

We came across a bullish thesis on Amazon.com, Inc. on Capitalist Letter’s Substack by Oguz Erkan. In this article, we will summarize the bulls’ thesis on AMZN. Amazon.com, Inc.'s share was trading at $233.88 as of December 1st. AMZN’s trailing and forward P/E were 33.03 and 29.59 respectively according to Yahoo Finance.

Amazon has doubled its operating cash flow since 2020, yet the stock has risen only 40%, compressing its price-to-operating cash flow ratio from 25x to 19x. This indicates that Amazon has grown into its prior overvaluation, suggesting the stock’s premium is...