Amazon Stock Rises on AI Investments, But Can Cash Flow Sustain Growth?

Amazon's stock price has surged 93.3% over the past three years, but some investors are questioning whether the company's cash flow can sustain this growth.

The trailing twelve-month free cash flow for Amazon stands at around $32.6 billion, according to a discounted cash flow analysis from Simply Wall St.

However, the company is investing heavily in AI infrastructure, which is expected to cost billions of dollars and temporarily reduce cash flow in 2027.

Some analysts believe that this investment will pay off in the long run, but others are more cautious, arguing that the shares have already been priced too high even before recent gains.