Amazon Stock Dives on Cash Flow Surge

Amazon's stock price has nearly doubled over the past three years but has only risen around 12% so far this year, roughly in line with the S&P 500.

The company's cash flow from operations surged to $161 billion in its second quarter, growing faster than its share price and pushing down its price-to-cash flow multiple to about 17.

This is a significant drop from pre-2022 bear market levels when Amazon's stock traded at a 25x cash flow multiple or higher.

The growth of Amazon Web Services (AWS), the company's largest profit contributor, is also accelerating, with revenue climbing 37% year over year in the second quarter (excluding currency changes).