Every Amazon (AMZN) Investor Should Keep an Eye on This Number

Core Insights - Amazon is a significant player in the market with $670 billion in net sales and a market cap of $2.4 trillion, yet investors may not be tracking the right data points to assess its fundamental strength [1] Financial Metrics - Free cash flow (FCF) is a crucial metric for Amazon, showing the cash remaining after operating expenses and capital expenditures. Amazon's FCF has increased from losses in 2021 and 2022 to $36.8 billion in 2023 and is projected to be $38.2 billion in 2024 [4] - Despite the growth in FCF over the past two years, analysts predict a decline to $23.5 billion this year due to increased investments in AI initiatives, making it essential for investors to monitor this metric closely [6] Investment in AI - Amazon is heavily investing in AI infrastructure, which is expected to impact its financials significantly. The hope is that the FCF will continue to grow, indicating positive returns from these capital expenditures [5]