While Google has posted more than $68 billion in profits before taxes between 2010-2014, Amazon has netted just $2.6 billion over the same time frame, according to Thomson Reuters data.
The cashflow is a better gauge of how the company is doing, according to Robert S. Peck, an analyst at SunTrust Robinson Humphrey, who downgraded the company to "neutral" on March 9 because he views the shares as overvalued. He estimates its free cash flow from operations will climb to $8.9 billion this fiscal year from $3.4 billion in 2010, yet nearly all of that additional cash is being used to expand into businesses like grocery delivery or web services.
The company's shares have rallied nearly 26 percent for the year to date after its fourth quarter results beat Wall Street estimates. Sales continue to grow at an above-market pace, with analysts expecting it to post 13.7 percent revenue growth in the first quarter of 2015 when it reports results on Thursday.
Its share price is up approximately 167 percent over the past five years, nearly 90 percentage points more than the benchmark Standard & Poor's 500 index's gain. The stock trades at a price-to-earnings ratio of 414, based on 2015 earnings estimates, against 17.1 for the S&P 500, according to StarMine data.
Overall, Wall Street seems to be giving the company time. "Management has earned the benefit of the doubt," said Mark Oelschlager, co-portfolio manager of the White Oak Select Growth fund who has owned the stock for the last 8 years. "Their core retail business remains to us the jewel of the company, and they have this huge platform that would be difficult for any competitor to replace."
Just two of the 45 analysts tracked by Reuters who cover the company have a sell rating on its shares, while 27 recommend that clients actively buy shares.
"The market overall is in a bull market and it's giving this company a pass," said Chaim Siegel, an analyst at Elazar Advisors who downgraded the company to the equivalent of "sell" on April 2. While high now, the company's shares will likely plunge at any sign that the market's overall direction is turning negative, he added.
Bill Smead, portfolio manager of the $1.1 billion Smead Value fund, said he does not own shares of Amazon despite his fund's overall bet that consumer spending will climb. Ironically, that is because he expects the company's shares to tumble once it finally does show consistent profits - a sign that its growth days are over.
"As long as it’s a spectacular sales growth story they're fine, but as soon as they actually generate earnings their valuation is going to be based on that" rather than investor's trust in Amazon's strategy, he said. "That's when your mortality kicks into gear."