Amazon Is at a Peak But AMZN Stock Is Still Worth 22% More at $185

Amazon (AMZN) stock has risen to a peak price of $151.94 at year-end 2023. But AMZN is still worth at least $185 per share based on its powerful free cash flow. Moreover, shareholders can gain extra income while they wait for this target price by selling short out-of-the-money (OTM) put options.

I discussed these points in my Nov. 28 Barchart article, “Amazon Could Be Worth $181 Per Share, 23% on Its Powerful Free Cash Flow.” At the time AMZN was at $147.45 per share and I recommended shorting the $140 strike price put for 85 cents and the $142 strike price put for $1.25 - both for expiration on Dec. 15.