Amazon (AMZN) AI Stock Analysis

• Market Cap: $2.40T
• Dividend Yield: N/A
• Average Volume (3M): 40.23M
• Price to Earnings (P/E): 37.4
• Beta (1Y): 1.32
• Revenue Growth: 10.08%
• EPS Growth: 71.88%
• Country: US
• Employees: 1,560,000
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Specialty Retail
• EPS (TTM): 1.59
• Shares Outstanding: 10,616,353,000
• 10 Day Avg. Volume: 38,117,561
• 30 Day Avg. Volume: 40,226,881
• PEG Ratio: 3.32
• Price to Book (P/B): 7.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 115.36
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 7.72
• Enterprise Value/Ebitda: 5.15
• 1Y Price Target: $257.73
• Price Target Upside: 13.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 45

• Rating: 73 Outperform
• Price Target: $233.00 ▲(2.43%Upside)

Amazon's overall stock score reflects a strong financial performance and positive earnings call outcomes, with growth in key areas such as AWS and advertising. However, technical analysis indicates potential overbought conditions, and a high P/E ratio raises valuation concerns. Despite these challenges, Amazon's strategic initiatives and robust financials provide confidence in its long-term potential.

Positive Factors

Cost Efficiency

GenAI is reducing costs in AMZN's logistics, enhancing efficiency.

Revenue Growth

Strong AWS revenue growth and margin expansion should benefit AMZN.

Sales Performance

Record-breaking prime days are expected to boost AMZN’s outlook.

Negative Factors

Cost Management Focus

Project Kuiper has remained a top management growth initiative despite Amazon’s cost focused agenda, and satellite launches began.

Disclosure Practices

Amazon provided even less quantifiable disclosures vs prior years, making it difficult to gauge sales from the event.

Regulatory Challenges

Regulatory headwinds persist and the macro is treacherous.

Amazon Business Overview & Revenue Model

Company Description

Amazon.com, Inc. is a multinational technology company based in Seattle, Washington, primarily known for its e-commerce platform. It operates through several segments, including North America, International, and Amazon Web Services (AWS). Amazon offers a wide array of products and services, from consumer electronics, digital media, and cloud computing services to groceries and apparel. The company also provides artificial intelligence solutions, streaming services via Amazon Prime Video, and owns several subsidiaries such as Whole Foods Market and Zappos.

How the Company Makes Money

Amazon generates revenue through multiple streams, primarily focusing on its e-commerce platform and cloud computing services. The e-commerce segment includes product sales and commissions from third-party sellers using Amazon's marketplace. Amazon charges these sellers fees for listing and selling their products on its platform. Additionally, Amazon earns money from subscription services, such as Amazon Prime, which offers members benefits like free shipping, streaming access, and exclusive deals. Amazon Web Services (AWS) is a major revenue driver, providing scalable cloud computing solutions to businesses and governments, and is known for its high profitability. Advertising services are another significant source of income, as businesses pay Amazon to promote their products on its platform. Furthermore, Amazon has strategic partnerships and acquisitions that enhance its market position and expand its product offerings, contributing to its overall earnings.

Amazon Financial Statement Overview

Summary

Amazon demonstrates solid financial performance with strong profitability, efficient operations, and a stable balance sheet. Revenue growth and profitability metrics are robust, supporting an optimistic outlook. The balance sheet is well-managed, though reducing debt could enhance financial flexibility. Cash flow remains strong, though the decline in free cash flow should be monitored. Overall, Amazon's financial health is commendable, reflecting its position as a leading player in the specialty retail sector.

Income Statement

Amazon's income statement reveals strong profitability and growth. The TTM (Trailing-Twelve-Months) gross profit margin stands at 45.37%, indicating solid cost management. The net profit margin is a robust 10.14%, showcasing effective conversion of revenues into profit. Revenue growth is consistent, with a 2% increase from the previous year, reflecting steady expansion. EBIT and EBITDA margins are healthy at 11.02% and 17.98% respectively, underscoring operational efficiency.

Balance Sheet

Amazon's balance sheet is strong, with a debt-to-equity ratio of 0.44, indicating prudent leverage. The return on equity (ROE) is a solid 21.56%, highlighting effective use of shareholder funds. The equity ratio is 47.54%, reflecting a stable capital structure with significant equity financing. Overall, the company maintains a healthy balance between debt and equity, although there is room for improvement in reducing total debt.

Cash Flow

The cash flow statement shows robust operating cash flow to net income ratio of 1.73, indicating strong cash generation capabilities. However, the free cash flow has decreased by 36.67% compared to the previous year, which could be a concern. The free cash flow to net income ratio is 0.32, suggesting moderate cash conversion efficiency. Overall, while operating cash flow remains strong, the decline in free cash flow warrants attention.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	637.96B	574.78B	513.98B	469.82B	386.06B
Gross Profit	311.67B	270.05B	225.15B	197.48B	152.76B
EBITDA	123.81B	89.40B	38.35B	74.39B	51.01B
Net Income	59.25B	30.43B	-2.72B	33.36B	21.33B
Balance Sheet
Total Assets	624.89B	527.85B	462.68B	420.55B	321.19B
Cash, Cash Equivalents and Short-Term Investments	101.20B	86.78B	70.03B	96.05B	84.40B
Total Debt	130.90B	135.61B	140.12B	116.39B	84.39B
Total Liabilities	338.92B	325.98B	316.63B	282.30B	227.79B
Stockholders Equity	285.97B	201.88B	146.04B	138.25B	93.40B
Cash Flow
Free Cash Flow	32.88B	32.22B	-16.89B	-14.73B	25.92B
Operating Cash Flow	115.88B	84.95B	46.75B	46.33B	66.06B
Investing Cash Flow	-94.34B	-49.83B	-37.60B	-58.15B	-59.61B
Financing Cash Flow	-11.81B	-15.88B	9.72B	6.29B	-1.10B

Amazon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 227.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMZN, the sentiment is Positive. The current price of 227.47 is above the 20-day moving average (MA) of 222.15, above the 50-day MA of 213.80, and above the 200-day MA of 207.78, indicating a bullish trend. The MACD of 4.23 indicates Positive momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 86.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMZN.

Amazon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BABA	79 Outperform	$281.51B	15.74	13.04%	0.01%	5.17%	74.55%
PDD	78 Outperform	$151.38B	12.02	36.31%	―	35.04%	22.04%
SE	78 Outperform	$99.78B	109.21	11.13%	―	30.18%	1995.22%
JD	77 Outperform	$52.25B	8.28	19.81%	0.09%	8.13%	91.39%
MELI	75 Outperform	$122.36B	58.52	49.11%	―	41.92%	81.11%
AMZN	73 Outperform	$2.40T	37.40	25.24%	―	10.08%	71.88%
Sector *	61 Neutral	€5.84B	12.16	-11.12%	4.41%	3.79%	-34.20%

Amazon Corporate Events

Amazon Shareholders Meeting Highlights Key Decisions

On May 21, 2025, Amazon held its Annual Meeting of Shareholders where several directors were elected, and Ernst & Young LLP was ratified as the independent auditor for 2025. Despite the approval of executive compensation, multiple shareholder proposals, including those on CEO-Chair separation, advertising risks, emissions reporting, and AI oversight, were not approved, indicating a potential disconnect between shareholder interests and company decisions.

The most recent analyst rating on (AMZN) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Amazon stock, see the AMZN Stock Forecast page.