AMZN – Market expectations are for Uniform ROA to decline, and management may have concerns about regulatory challenges and their strategic initiatives

• Amazon. com, Inc. (AMZN) currently trades above corporate and recent averages relative to Uniform earnings, with a 53.1x Uniform P/E (Fwd. V/E’).
  
• At these levels, markets are pricing in expectations for Uniform ROA to expand to 20%, accompanied by 12% Uniform asset growth.
  
• Meanwhile, analysts expect Uniform ROA to remain at 10% levels through 2022, accompanied by 15% Uniform asset growth.
  
• If sustained going forward, these levels would imply a stock price closer to $1,873, representing significant potential equity downside for the firm.
  
• Moreover, the firm’s most recent earnings call suggests management may have concerns about capacity constraints, labor shortages, and AWS.