Amazon Stock Continues to Slowly Move Higher, Reflecting Faith in its Free Cash Flow

Amazon (AMZN) stock is slowly rising ever since the April 27 release of its Q1 results. AMZN stock closed at $116.25 on Friday, May 19, up 5.9% from $109.82 on April 27. Confidence that Amazon is making positive free cash flow (FCF) is growing. This makes shorting puts and calls very profitable for enterprising investors.

In fact, we wrote about this FCF development in our recent Barchart article on April 28, “Amazon Results Surprise with Higher Revenue and FCF, Making AMZN Stock Popular Again.” We pointed out that management said its operating cash flow for the trailing 12 months (TTM) ended March 31st increased to $54.3 billion, up 38% versus the comparable period year-over-year.