EQUITY RESEARCH | DEEP VALUE RESEARCH
Amazon.com, Inc. (AMZN)
Sector: Consumer Discretionary / Broadline Retail & Cloud |
Published: 2026-10-24 |
Pages: 6
Price at publication: $248.00 | Market cap: $2.68 trillion
Themes: AI Infrastructure Sum of the parts Earnings preview
Executive Summary
Amazon heads into its October 29 third-quarter report at $248, about 14% below its August high. Reported earnings are hard to use right now: second-quarter EPS of $5.75 was mostly a mark-up of Amazon’s investment in Anthropic, and more than $200 billion a year of data center spending has pushed free cash flow below zero. So we value Amazon in pieces: AWS, with $496 billion of contracted backlog, advertising, retail, and the stakes in Anthropic and OpenAI. We also show what the Anthropic stake is worth at different IPO valuations and check the result against earnings with the stakes taken out. The report closes with what to watch in the quarter.
What’s Inside The Full Report
- Executive summary and key points
- The parts
- Anthropic, OpenAI and the other stakes
- On earnings
- What to watch on October 29
- Risks
- Conclusion
- TTCM rating and position disclosure
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