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Amazon's (NASDAQ:AMZN) AWS is teaming up with Saudi startup Humain to roll out its AI servers, UltraCluster high-speed networks and Amazon Q app services throughout the Kingdom's new AI Zonethink state-of-the-art cloud power on Saudi soil.
This follows AWS plowing $4 billion into Chile and underscores Amazon's playbook of planting local cloud and AI flagpoles in fast-growing markets. Saudi ICT minister Eng. Abdullah Alswaha called it the foundation for the intelligent era, and with AWS gear sitting in Humain's data centers plus joint training bootcamps for thousands of Saudi developers, it's clear both sides want to build an AI talent pipeline as big as the desert.
But hey, all that swagger comes at a price. Amazon's $213.75 share tag sits a tad above most of its own valuation yardsticksGuruFocus pegs fair value at $170, and a cash-flow DCF puts it under $184. Even the median price-to-sales target of $201 lags today's quote, so you're basically paying up for future growth. The real conservative numbers (tangible book, Graham Number, FCF-based DCF) are way down in single digits, and balance-sheet metrics are in the red. In short, AMZN's trading on a modest premium, betting that its cloud and retail engines will keep humming louder than those lower-end valuation signals.
This article first appeared on GuruFocus.