Amazon Q3 Earnings Preview: AWS Is Booming, But Is $248 Too Much?

Amazon is rated Hold with a fair value of $225 versus a $248 share price, citing capital intensity concerns. AWS growth and margin sustainability are pivotal; 39%-40% AWS growth with stable margins would justify a higher valuation. The $220B capex program raises questions about long-term cash flow and return on investment, overshadowing near-term EPS beats.