A Closer Look At Amazon Web Services And A Potential Spinoff

Dec. 18, 2022 7:00 AM ETAmazon.com, Inc. (AMZN)AAPL, GOOG, GOOGL, META, MSFT25 Comments
BeanKounter Capital profile picture
BeanKounter Capital


  • Amazon is the last big tech company I own and I plan to hold shares as long as high margin segments like AWS and advertising continue to perform.
  • I cover the Q3 results for AWS and talk about a potential spinoff.
  • Shares are attractive today with a price/cash flow multiple of 18.5x. This is well below the average multiple of 27.2x.
  • A couple of risks to keep an eye on for the stock is weakness in the economy and/or the stock market.
  • The buyback program could be a sign of more capital return to come, but it is currently outweighed by the stock-based compensation.

AWS re:Invent 2022

Noah Berger/Getty Images Entertainment

I have written three articles on Amazon (NASDAQ:AMZN) in 2022. In each article, I mentioned Amazon Web Services, which is the crown jewel operating segment of the company. Today I want to dig deeper on AWS and its

AWS Profile

AWS ([10-Q] sec.gov)

Amazon Valuation

Price/Cash Flow (fastgraphs.com)

This article was written by

BeanKounter Capital profile picture
CPA and former Big 4 auditor. I break down investments in qualitative and quantitative terms, and I look for investments that will compound my money over the long term.

Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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