Amazon has claimed the number one position on the Fortune 500 list, with projected revenues for FY 2026 exceeding $828 billion, representing over 2.5% of U.S. GDP and a year-over-year growth of 15.5%. Despite this impressive growth, Amazon's stock trades at a near-market multiple of 22 times the FY 2027 adjusted earnings per share estimate of $12.35.
This relatively low multiple may stem from investor concerns regarding the company's substantial capital expenditures, which are expected to reach nearly $280 billion in FY 2027. However, Amazon's forecasted EBITDA for the same year is also projected to exceed $280 billion, indicating that the company can sustain its investments.
Currently, Amazon's stock has been stagnant since a 15% jump following its earnings report on July 30, with few catalysts expected before the next quarterly earnings report. Trader Mike Khouw suggests a 'jade lizard' options strategy for investors anticipating that Amazon's stock will remain range-bound in the near term.
This strategy involves selling a put and a call option while buying a higher-strike call to hedge against potential price movements. The specifics of the trade include selling a September 25 put at a strike price of $240, selling a September 25 call at $300, and buying a September 25 call at $320