AWS is up a whopping 37% this quarter. This is a massive reaceleration to AWS's business.

AWS's growth rate is starting to catch up to Azure despite it being the largest cloud provider out of this group by far. This is extremely impressive and bullish for AWS in my opinion.

The advertising business is up 26% year-over-year and accelerated from 22% last quarter, which means that this was a very strong quarter for Amazon's advertising business. And its advertising business is becoming huge, doing about $80 billion in annual revenue.

if Amazon can lend money at 4 to 5% and then produce 20% plus returns on that capital, then it's actually still producing a positive return for shareholders. And I do believe that they are getting above 20% returns on their capex.

the way that Andy Jasse laid it out means that Amazon is generating a 28% annual return on the capex that they are spending today.

Amazon now has RPOs of $496 billion. And you can see just how quickly the RPOS are growing. In the third quarter of 2025, they were sitting at 200 billion. And they are now up roughly 2.5x to 496 billion. And this is one of the main reasons why Amazon is investing so much money into capex is because their backlog is absolutely exploding.

it's still trading for an price to operating cash flow of 18 in the trailing 12 months now. And you can clearly see that this is well below Amazon's historical averages. Its previous low before it started to sell off in 2023 was 19 times operating cash flow in 2016 and it's even below that today.

with what I think are pretty pessimistic numbers in this DCF, I get a 22% compounded annual growth rate to the share price over the next three years, a 371 fair value, and a future stock price of 500 bucks by the end of 2028.

I have added to my Amazon position significantly over the past year.