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

December 20, 2021

  • 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.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683