$AMZN

Amazon is a large favorite holding: operating cash flow, its key valuation driver, is expected to grow strongly through 2028, and at today's low multiple it could be worth $500–$600 in three years, doubling or tripling now. A no-brainer beating the S&P, expected to keep doing so two more years.

BullishHe framed it in years
“Don’t Overthink the Magnificent Seven”
Rich HabitsPublished Oct 19 · 10 passages

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10 passages
6:2313:28

So, if you don't have exposure to Google, Meta, Microsoft, or Amazon, I highly recommend building a suitable investment portfolio and, perhaps like me, increasing my weight in the "Great Seven".

but I also have a large investment position in Amazon, a large position in Microsoft, a growing position in Meta, and a growing position in Alphabet.

Now, my favorites of these, as you can see here, are actually two of them, Amazon. Look at this, free cash flow is negative this year. We expect a modest cash flow next year, and then boom, a big orange band will continue to grow there.

I still believe that big tech stocks like Amazon, Microsoft, Meta, Apple, and, you know , Nvidia, and the like, will continue to perform well.

This is Amazon on the "Fast Graves" platform. " Fast Graves," for those who may be new here, is a platform that explains to you, historically, historically , isn't it? Is the company currently overvalued or undervalued?

So, if we look at history and compare its current valuation with its historical valuation, is its current valuation exaggerated or undervalued compared to what it was before?

And so, for Amazon, as you can see here, operating cash flow is the best way investors have valued Amazon, sort of. You can see this black line which is their stock price, and the blue line is their operating cash flow.

Well, operating cash flow declined significantly in 2021, and remained largely stagnant in 2022. What did their stock price do? It also decreased. But it started to move upwards and to the right again in 2023 and 2024, and now in 2026, 2027 and 2028, it will really start to move upwards and to the right.

So if we maintain the same valuation multiple that it has now, which is one of the lowest valuation multiples it has had in the past few years, we are talking about a stock that could be worth $500, $550 or $600 per share in the next three years. correct?

This means double, and possibly even triple, its current value.

So, Amazon, however boring it may seem, you may have Alexa at home, or whatever, and say, "Oh, I do n't want Amazon." I want one of these catchy names in the field of artificial intelligence.

Okay , whatever you say. I mean , I think they are no- brainer investments and should be in everyone's portfolio.

We've talked about Amazon at $185, $190 per share, and $205, whatever the price may be. Now , its price has reached $260. Amazon is now outperforming the S&P index, which is fantastic.

And I think it will continue to do so for the next two years.

Um, so, just a quick reminder, Amazon, Microsoft, Meta, Apple, like investing an average dollar amount in these giants, the "Great Seven," isn't a bad idea.

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Rich Habits has 4 calls on this stock; only the adjacent ones are shown.

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