Amazon has achieved its fifth consecutive quarter of beating Wall Street's EPS expectations, with a trailing P/E of 33x. The company operates in cloud computing and online retail, and is emerging as a custom silicon provider. AWS revenue reached $37.587 billion in Q1, growing 28% year-over-year, marking the fastest growth in 15 quarters. The backlog stands at $364 billion, excluding a recent $100 billion deal with Anthropic. Q1 EPS of $2.78 exceeded estimates by 60.69%, with operating margin hitting a record 13.1%.
"Amazon's current P/E ratio of 33x is substantially lower than the historical 10-year median of 81x, meaning investors are paying less than half the multiple long-term holders have historically paid for a business with better margins."
"AWS posted $37.587 billion of revenue in Q1, growing 28% year-over-year, the fastest growth in 15 quarters, indicating that growth is accelerating despite the increasing scale of the business."
"The backlog locks the conviction in, with $364 billion in Q1 backlog, which does not include the recent Anthropic deal of over $100 billion, representing multiple years of forward AWS revenue."
"Q1 EPS of $2.78 against a $1.73 estimate is a 60.69% beat, and even after stripping out the one-time Anthropic mark, operating income still rose 30%, with operating margin hitting 13.1%, the highest ever for the company."
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