From Nasdaq:

Warren Buffett’s Berkshire Hathaway owns 10 million shares of Amazon, valued at approximately $1.6 billion. The stock price surged 75% over the last year, and analysts forecast another 15% climb in the next 12 months. However, high price targets and unresolved expenses could lead to a portfolio’s underperformance.

Amazon swung back to profit, generating $36.8 billion in free cash flow last year. Total revenue rose 12% YoY, with a 14% YoY increase in Q4 sales. AWS is the leading cloud-computing service provider, holding 55% of overall operating income last year.

Amazon is positioning AWS as a leading service provider for state-of-the-art AI applications. The company operates an unbeatable e-commerce platform and made significant investments during the pandemic to expand its logistics network.

At a forward-looking P/E ratio of 47, Amazon’s stock is costly and risky to some investors. While it has high growth potential, undelivered earnings could lead to swift losses.

There are no guarantees about future success. Investing in Amazon now may be riskier than anticipated, given its valuation. Buyers should proceed with caution.



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