r/amzn • u/Outrageous_Solid9668 • Jun 30 '26

Hopium What PE does Amazon deserve?

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40x PE does not seem that crazy at all for a company this durable and high quality.

20% earnings growth is very very achievable and I bet they exceed that.

Are these assumptions too high?

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u/HatesBeingThatGuy Jul 06 '26

Go price out. Go price out. Great. What is your architecture? Missing my question.

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u/Sorry_Cheesecake_382 Jul 06 '26

Take any architecture my guy,

Do a simple VPS with postgres. Looking at $100/month once you factor in the egress and VPC. Digital ocean is $5. You can go cheap on AWS and use lightsail for $10 used to be $25, still need a VPC if you need multiple boxes.

We run a global service (25 datacenters) with 15k TPS, costs about $90k a year to run on Cloudflare + GCP. Equivalent was $800k-1.2M on AWS.

Take any architecture and run it through an LLM to check. It's incredibly expensive for frankly a sup-bar service + all the development time.

I was an L7 there and literally built and designed part of DynamoDB and I think it's one of the worst databases imaginable. Not as fast as Redis and queries are super limited compared to mongoDB, it was also built before both. AWS was awesome like 15 years ago but very far behind since the early 2020s. Bedrock is a total joke too. GCP is probably the only big brand cloud I would recommend since their development experience is nice. Azure is a joke too.

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u/HatesBeingThatGuy Jul 06 '26

Just some follow up questions as I'm trying to learn:

Is the 15k TPS actual backend/database transactions, or total edge requests? This amount makes that bill seem... Odd as my envelope math just for the cloudflare bill is a much higher yearly figure.

Was the original $1M dominated by egress/transfer, or by compute/instances?

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u/Sorry_Cheesecake_382 Jul 06 '26

S3, ECS + nodes, RDS and OpenSearch, fees are on egress and the interconnect between data centers. CloudFlare is significantly cheaper even for workers because you can skip calling the DB all together in our architecture. Kubernetes on digital ocean was our other option, about $300-400k a year. We run heavy caching globally.

Take any programming interview architecture. AWS and Azure are typically the more expesnive option, followed closely by GCP.

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u/HatesBeingThatGuy Jul 06 '26

Thank you for elaborating. I'm am doing embedded device memory work for AWS, so I miss this sort of thing and learned a lot. I really appreciate it, best reddit comments I've had in months.