Amazon Stock at Decade-Low 29x Multiple as $200B Capex Slashes FCF

Amazon shares now trade at roughly 29 times earnings, the lowest valuation in over a decade, after persistent investor unease over the company’s planned $200 billion 2026 data-center spend pressured free cash flow to just $1.2 billion. The stock closed near $249 on July 13 following a volatile week that included sector rotation support after BofA raised its target and Jim Cramer highlighted hyperscaler momentum. Despite the capex drag, Q1 results showed 17% sales growth and 77% net-income growth, with AWS revenue surging 28% and a $364 billion backlog underscoring long-term demand. Multiple July 13 commentaries framed the free-cash-flow collapse and low multiple as a buying opportunity rather than a fundamental concern.