Amazon Stock: Is It Time to Buy Amid Surging Cash Flow?

Amazon's cash flow has surged to $161 billion in the second quarter, up 245% from the same period two years ago. This growth is largely driven by lower costs from warehouse automation and expansion of its cloud computing business.

The company's price-to-cash-flow multiple has decreased to around 17, down from a high of 25 before the 2022 bear market. Amazon Web Services (AWS) revenue climbed 37% year over year in Q2, excluding currency changes, and is expected to continue growing as demand for AI cloud services increases.

With the core e-commerce business also accelerating, up 15% year over year in Q2, some analysts believe now may be a good time to buy Amazon stock. The company's cash flow and growth in cloud services suggest a disconnect between its share price and underlying performance, which could make it an attractive investment opportunity.