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Amazon's Stock Surge Built on Paper Gains | Raleigh News
Amazon’s stock surged 15% after reporting earnings per share of $5.75—way above analysts’ expectations of $1.82. But here’s the twist: over 85% of that profit came from “paper gains” — unrealized increases in the value of Amazon’s investments, like its stake in AI startup Anthropic. While those gains boost reported profits, they’re not real cash and can’t be easily cashed out. If Anthropic’s value drops, Amazon could face massive losses. Strip away the paper gains, and actual EPS drops to ~$0.85 — making the stock look less like a bargain than it first seemed. Investors should always dig…
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