Amazon is positioned as a compelling buy with AWS backlog doubling to $496 billion and cloud operating margins surging to 39.4%. Q2 2026 marked the company's best quarter in over four years with 20% revenue growth and 37% AWS sales growth. Despite concerns about $220 billion capital expenditures and negative Q2 cash flow, the company trades at 20x earnings—near 10-year lows—supported by strong demand and a robust pipeline.
Axe note: Amazon’s AWS backlog hits nearly $500 billion, but SA investors should watch USD/ZAR closely.