Amazon Sees 37% AWS Growth, But GuruFocus Says Stock Price Overvalued by 7.8%

Amazon's recent earnings report exceeded expectations, driven by a 37% surge in AWS growth. This performance sparked a 15.32% jump in shares, reflecting strong investor enthusiasm around its ambitious $220 billion capital expenditure plan for 2026 aimed at expanding cloud services.

The company's current Price-to-Sales (P/S) ratio of 3.73x is elevated compared to its historical median and the industry median, suggesting the market is pricing in robust future growth. However, GuruFocus' GF Value™ for Amazon is $247.18, which is about 7.8% below the current market price of $266.43.

The GF Score™ stands at an impressive 93 out of 100, indicating strong overall financial health and growth potential. The company scores particularly well in growth (10/10) and profitability (8/10), reflecting strong earnings growth and expanding operating margins.