Amazon.Com, Inc. (AMZN)
NASDAQ:AMZN
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Amazon
(NASDAQ:AMZN)
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Rating:79Outperform
Price Target:
$307.00
▲(22.53% Upside)
Action:Reiterated
Date:05/23/26
AMZN scores well on improved profitability and a healthier leverage profile, supported by constructive price momentum. The score is held back by weak recent free-cash-flow conversion (slightly negative TTM) and earnings-call emphasis on heavy capex, cost inflation, and capacity constraints, which can keep cash flow and quarter-to-quarter results volatile despite strong AWS/AI demand.
Positive Factors
AWS Growth
Sustained AWS acceleration to ~28% growth and a ~$150B annualized run rate signals durable market leadership in cloud infrastructure. Scale advantages (pricing, regional footprint, ecosystem) drive high-margin, recurring revenue that underpins long-term profitability and enterprise customer lock-in.
Negative Factors
Free Cash Flow Pressure
FCF turned slightly negative TTM despite robust operating cash flow, reflecting heavy investment and working-capital demands. Persistently weak FCF conversion reduces near-term financial flexibility, limits capacity for buybacks/dividends, and raises sensitivity to any operating slowdowns over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
AWS Growth
Sustained AWS acceleration to ~28% growth and a ~$150B annualized run rate signals durable market leadership in cloud infrastructure. Scale advantages (pricing, regional footprint, ecosystem) drive high-margin, recurring revenue that underpins long-term profitability and enterprise customer lock-in.
Read all positive factors
Amazon Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAmazon (AMZN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.86T
Dividend YieldN/A
Average Volume (3M)44.48M
Price to Earnings (P/E)18.5
Beta (1Y)1.47
Revenue Growth14.22%
EPS Growth35.55%
CountryUS
Employees1,560,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)8.49
Shares Outstanding10,757,109,000
10 Day Avg. Volume35,971,923
30 Day Avg. Volume44,477,663
Financial Highlights & Ratios
PEG Ratio1.10
Price to Book (P/B)5.98
Price to Sales (P/S)3.43
P/FCF Ratio319.64
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue4.00
Enterprise Value/Gross Profit7.91
Enterprise Value/Ebitda17.32
Forecast
1Y Price Target
$319.00Price Target Upside27.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering46
EPS Forecast (FY)8.77
Revenue Forecast (FY)$823.85B
Amazon Business Overview & Revenue Model
Company Description
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web S...
How the Company Makes Money
Amazon makes money through multiple major revenue streams: (1) Online stores and physical stores: direct sales of products to consumers via Amazon’s websites and owned retail formats, earning revenue at the point of sale (with profitability influe...
Amazon Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line and segment-level performance—particularly accelerating AWS growth, AI momentum, rapid expansion of custom silicon, robust retail and delivery improvements, and growing advertising and LEO commitments. Management also highlighted major ongoing investments (Q1 CapEx $43.2B) and short-term headwinds from supply-chain inflation, fulfillment and transportation cost increases, LEO-related near-term costs, and Trainium capacity constraints. Overall, positive operational and revenue momentum is tempered by notable near-term investment-driven cash flow pressure and supply/capacity risks.Positive Updates
Strong Revenue and Operating Income
Worldwide revenue of $181.5 billion, up 17% year over year (net sales +15% excluding a $2.9 billion favorable FX impact). Operating income of $23.9 billion with an all-time high operating margin of 13.1%.
Negative Updates
Heavy Short-Term CapEx Pressure
Q1 cash CapEx of $43.2 billion and commentary that rapid AWS growth leads to CapEx outpacing revenue in early years, which can challenge near-term free cash flow until new capacity is monetized.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue and Operating Income
Worldwide revenue of $181.5 billion, up 17% year over year (net sales +15% excluding a $2.9 billion favorable FX impact). Operating income of $23.9 billion with an all-time high operating margin of 13.1%.
Read all positive updates
Company Guidance
Amazon guided Q2 2026 net sales of $194–$199 billion and operating income of $20–$24 billion, assuming Prime Day occurs in most large geographies in Q2 (with Australia, Brazil, India and Japan in Q3); they estimate a roughly 10‑basis‑point year‑over‑year foreign‑exchange headwind for the quarter. The outlook reflects a seasonal step‑up in stock‑based compensation, an expected ~ $1 billion year‑over‑year North America cost increase tied to Amazon LEO (with some LEO costs to be capitalized beginning in Q4), and higher transportation costs from fuel inflation that are partially offset by a fuel‑ and logistics‑related FBA surcharge; management said the guidance incorporates current order trends and assumes no additional acquisitions, restructurings, or legal settlements.Amazon Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 742.78B | 716.92B | 637.96B | 574.78B | 513.98B | 469.82B |
| Gross Profit | 375.88B | 360.51B | 311.67B | 270.05B | 225.15B | 197.48B |
| EBITDA | 171.66B | 165.34B | 123.81B | 89.40B | 38.35B | 74.39B |
| Net Income | 90.80B | 77.67B | 59.25B | 30.43B | -2.72B | 33.36B |
Balance Sheet | ||||||
| Total Assets | 916.63B | 818.04B | 624.89B | 527.85B | 462.68B | 420.55B |
| Cash, Cash Equivalents and Short-Term Investments | 143.09B | 123.03B | 101.20B | 86.78B | 70.03B | 96.05B |
| Total Debt | 209.89B | 152.99B | 130.90B | 135.61B | 140.12B | 116.39B |
| Total Liabilities | 474.72B | 406.98B | 338.92B | 325.98B | 316.63B | 282.30B |
| Stockholders Equity | 441.91B | 411.06B | 285.97B | 201.88B | 146.04B | 138.25B |
Cash Flow | ||||||
| Free Cash Flow | -2.47B | 7.70B | 32.88B | 32.22B | -16.89B | -14.73B |
| Operating Cash Flow | 148.53B | 139.51B | 115.88B | 84.95B | 46.75B | 46.33B |
| Investing Cash Flow | -176.95B | -142.54B | -94.34B | -49.83B | -37.60B | -58.15B |
| Financing Cash Flow | 62.48B | 9.66B | -11.81B | -15.88B | 9.72B | 6.29B |
Amazon Technical Analysis
Positive
250.56
Price Trends
241.92
Positive
232.86
Positive
230.55
Positive
Market Momentum
5.72
Positive
57.98
Neutral
65.19
Neutral
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 250.56 is below the 20-day moving average (MA) of 267.10, above the 50-day MA of 241.92, and above the 200-day MA of 230.55, indicating a neutral trend. The MACD of 5.72 indicates Positive momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 65.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMZN.
Amazon Risk Analysis
Amazon disclosed 24 risk factors in its most recent earnings report. Amazon reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amazon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.11T | 21.63 | 33.13% | 0.44% | 17.87% | 29.63% | |
79 Outperform | $2.86T | 18.49 | 23.34% | ― | 14.22% | 35.55% | |
78 Outperform | $4.62T | 13.90 | 38.98% | 0.26% | 17.77% | 46.22% | |
76 Outperform | $51.39B | 19.91 | 44.12% | 1.38% | 13.15% | 5.89% | |
70 Outperform | C$188.00B | -67.66 | 10.52% | ― | 30.85% | -15.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $311.10B | 137.72 | 9.98% | 1.31% | 4.44% | -16.38% |
* Consumer Cyclical Sector Average
AMZN
Amazon
265.29
59.27
28.77%
EBAY
eBay
115.31
43.88
61.42%
MSFT
Microsoft
416.03
-41.01
-8.97%
BABA
Alibaba
129.47
11.92
10.14%
TSE:SHOP
Shopify
144.89
-2.62
-1.78%
GOOG
Alphabet Class C
384.84
211.46
121.96%
Amazon Corporate Events
Executive/Board ChangesShareholder Meetings
Amazon Shareholders Back Board, Pay and Governance Status Quo
Positive
May 22, 2026
At its May 20, 2026 Annual Meeting of Shareholders, Amazon re‑elected all nominated directors, including founder Jeffrey P. Bezos and CEO Andrew R. Jassy, to serve until the next annual meeting, reinforcing continuity in the company’s ...
Business Operations and StrategyM&A Transactions
Amazon to Acquire Globalstar, Expanding Satellite Connectivity
Positive
Apr 14, 2026
On April 14, 2026, Amazon.com, Inc. and Globalstar, Inc. announced a definitive merger agreement under which Amazon will acquire Globalstar, including its mobile satellite services operations, infrastructure, and globally authorized spectrum licen...
Business Operations and StrategyShareholder Meetings
Amazon Highlights Robotics, Rural Delivery and LEO Expansion
Positive
Apr 9, 2026
In its 2025 shareholder letter, Amazon’s leadership reflected on the non-linear evolution of key businesses such as AWS and outlined how the company aims to navigate major technological and geopolitical inflection points. The letter emphasiz...
Business Operations and StrategyPrivate Placements and Financing
Amazon Completes Major Multi-Tranche Euro Bond Issuance
Positive
Mar 16, 2026
On March 16, 2026, Amazon.com, Inc. completed the sale of €14.473 billion of euro‑denominated notes across multiple maturities, including floating rate notes due 2028 and fixed‑rate tranches maturing between 2028 and 2064. After ...
Business Operations and StrategyPrivate Placements and Financing
Amazon Completes Massive Multi-Tranche Corporate Debt Offering
Positive
Mar 13, 2026
On March 13, 2026, Amazon.com, Inc. closed a massive multi‑tranche debt offering, issuing a total of $36.898 billion in notes across floating‑rate and fixed‑rate maturities ranging from 2028 to 2076. The transaction, underwritten...
Business Operations and StrategyPrivate Placements and Financing
Amazon Deepens OpenAI Partnership With Major AI Investment
Positive
Feb 27, 2026
On February 27, 2026, Amazon and OpenAI announced a multi-year strategic partnership under which Amazon will invest a total of $50 billion in OpenAI, including an immediate $15 billion Series C preferred investment and a separate, conditional $35 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.