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Barchart
Mark R. Hake, CFA

Amazon Could Be Worth $181 Per Share, 23% on Its Powerful Free Cash Flow

Amazon (AMZN) is gushing free cash flow again based on its latest quarterly results. Based on 2024 revenue estimates and a 4% FCF margin AMZN could rise 23% to $181.52 per share using a conservative FCF yield metric. 

One way to play this is to sell short near-term expiration out-of-the-money (OTM) put options. That allows existing shareholders to generate income, as Amazon still does not pay a dividend to its shareholders. This is despite its positive free cash flow (FCF) generation. (It also does not buy back shares.)

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