Quick Read – Amazon’s (AMZN) $25B bond drew $62B in demand, and at 35x interest coverage, the company keeps $102B cash free for AI and acquisitions. – Amazon’s Q1 EPS beat consensus by 61% for its fifth straight win, outpacing Microsoft (MSFT) and Alphabet (GOOGL) on operating…
verage. – TTM free cash flow collapsed 95% to $1.2B as capex surged, but AWS’s $364B contractual backlog makes the spending already economically justified. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Amazon didn’t make the cut. Grab the names FREE today
I keep hitting the buy button on Amazon (NASDAQ:AMZN), and the $25 billion bond sale gave me three fresh reasons to keep going. I have owned this stock for years, and every time management pulls a lever this obvious, I add. The market treated the debt raise like a warning.
I read it like a receipt. The Cost of Capital Arbitrage I Keep Waiting For The 10-year Treasury sits at 4.55%, in the 94th percentile of the past 12 months. That yield looks rich in a vacuum, yet Amazon’s interest coverage ratio is 35.17x, which means the company can absorb this coupon in its sleep.