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Amazon valuation gap vs Tesla and SpaceX narrows on enterprise value
The article points to Amazon’s latest quarter showing net sales up 20% year over year and a 37% increase at AWS, which drove most of operating income.
A Yahoo Finance analysis compares Amazon’s valuation with Tesla and SpaceX, noting that Amazon is currently the market’s fifth most valuable company with a market capitalization of $2.8 trillion, while Tesla and SpaceX together total $3.3 trillion.
The piece says the gap narrows when using enterprise value rather than market cap, citing Amazon at $2.9 trillion versus $3.2 trillion for Tesla and SpaceX after accounting for net debt positions.
It attributes Amazon’s relative strength to profitability and faster progress at Amazon Web Services, with the article highlighting that net sales rose 20% for Amazon’s latest quarter. It also says North America e-commerce revenue rose 16%, while AWS jumped 37%.
The analysis further argues AWS is driving operating income, adding that AWS generated 60% of operating income while contributing 21% of top-line results in the second quarter. It also states Amazon is trading at 21 times projected earnings for the year, and notes the multiple could be closer to 25 on a forward view.