Why Amazon Stock May Be a Good Buy Today
On the surface, Amazon (NASDAQ: AMZN) stock may look expensive. Shares trade at 41 times earnings. But a look beneath the hood shows a number of reasons why the stock easily lives up to its premium valuation.
Here are some of the main reasons investors may want to consider adding shares of the e-commerce and cloud-computing giant to their portfolio today if they don't already own it.
Sure, Amazon's $1.8 trillion market capitalization might seem overwhelming to some investors looking into the stock. But the company's underlying cash flow helps justify this valuation. For instance, the company's trailing-12-month operating cash flow came in at an astounding $108 billion. This huge cash-flow stream enables enormous reinvestment in its business while still producing substantial free cash flow. Total trailing-12-month free cash flow, less principal repayments of finance leases and financing obligations, was $53 billion.
Source Fool.com
