Amazon (AMZN) AI Stock Analysis

• Market Cap: $2.46T
• Dividend Yield: N/A
• Average Volume (3M): 43.44M
• Price to Earnings (P/E): 35.3
• Beta (1Y): 1.40
• Revenue Growth: 10.87%
• EPS Growth: 56.13%
• Country: US
• Employees: 1,560,000
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Specialty Retail
• EPS (TTM): 1.68
• Shares Outstanding: 10,664,912,000
• 10 Day Avg. Volume: 54,700,619
• 30 Day Avg. Volume: 43,441,307
• PEG Ratio: 0.42
• Price to Book (P/B): 8.03
• Price to Sales (P/S): 3.60
• P/FCF Ratio: 69.88
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 7.92
• Enterprise Value/Ebitda: 18.88
• 1Y Price Target: $265.22
• Price Target Upside: 14.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 45

• Rating: 81 Outperform
• Price Target: $257.00 ▲(11.24% Upside)

Amazon's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting robust growth and strategic advancements. While technical analysis and valuation suggest caution, the company's innovation and market leadership position it well for future growth.

Positive Factors

Advertising Growth

Advertising growth remains robust, with a 23% YoY increase driven by higher ad relevance and platform adoption.

Grocery Expansion

Amazon is expanding its grocery selection to include fresh and perishable items on Amazon.com, making it available to a broader audience.

OpenAI Partnership

The addition of OpenAI to the AWS platform is seen as a positive initial step in the relationship, suggesting the companies are interested in working together.

Prime Member Benefits

Prime members now have access to free same-day delivery for grocery orders over $25, which is a more attractive offer compared to previous terms.

Negative Factors

AWS Margin Decline

AWS margin fell to the lowest in six quarters due to heavy AI investments, despite strong growth.

Competitive Pressure

Amazon has been losing modest share in online grocery to competitors like Walmart and DoorDash due to factors like price and convenience.

Amazon Business Overview & Revenue Model

Company Description

Amazon.com, Inc. is a multinational technology and e-commerce company based in Seattle, Washington. It operates through various segments, including North America, International, and Amazon Web Services (AWS). Core products and services encompass a wide range of categories, such as retail goods, digital content, and cloud computing solutions. Amazon is also known for its subscription services, including Amazon Prime, which offers members benefits like free shipping and access to streaming content.

How the Company Makes Money

Amazon generates revenue through several key streams. The largest portion comes from its e-commerce business, where it sells a vast array of products directly to consumers and acts as a marketplace for third-party sellers, earning fees on sales. Another significant revenue stream is Amazon Web Services (AWS), which provides cloud computing services to businesses and organizations, contributing substantially to the company's profitability. Additionally, Amazon earns revenue from subscription services, primarily through Amazon Prime, as well as advertising services on its platform. Strategic partnerships, such as those with other retailers and technology companies, enhance its service offerings and drive additional revenue.

Amazon Financial Statement Overview

Summary

Amazon's financial performance is strong with robust revenue growth and profitability. The income statement shows a significant revenue increase with healthy margins. The balance sheet is solid, with a manageable debt-to-equity ratio and impressive ROE, while cash flow statements indicate strong operational cash generation despite high capital expenditures.

Income Statement

Amazon's income statement shows robust growth and profitability. The TTM (Trailing-Twelve-Months) period reflects a significant revenue increase with a Gross Profit Margin of approximately 45.7% and a Net Profit Margin of 10.5%, indicating strong operational efficiency. The EBIT and EBITDA margins are also healthy at 11.4% and 19.2% respectively, highlighting substantial earnings before interest and taxes. Revenue growth from the previous year is impressive at 5%, demonstrating Amazon's ability to scale effectively.

Balance Sheet

The balance sheet is strong with substantial equity represented by a Debt-to-Equity Ratio of 0.40, indicating manageable leverage levels. The Return on Equity (ROE) is an impressive 21.2%, reflecting efficient use of equity to generate profits. An Equity Ratio of 48.9% suggests a solid capital structure with a good balance between debt and equity financing, although there is room for improvement in asset management.

Cash Flow

Amazon's cash flow statements show strong operational cash generation with a positive Free Cash Flow to Net Income ratio, demonstrating efficient cash management. The Free Cash Flow Growth Rate is negative, primarily due to high capital expenditures, but the company maintains a healthy Operating Cash Flow to Net Income ratio of 1.72, indicating strong cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	670.04B	637.96B	574.78B	513.98B	469.82B	386.06B
Gross Profit	306.41B	311.67B	270.05B	225.15B	197.48B	152.76B
EBITDA	128.49B	123.81B	89.40B	38.35B	74.39B	51.01B
Net Income	70.62B	59.25B	30.43B	-2.72B	33.36B	21.33B
Balance Sheet
Total Assets	682.17B	624.89B	527.85B	462.68B	420.55B	321.19B
Cash, Cash Equivalents and Short-Term Investments	93.18B	101.20B	86.78B	70.03B	96.05B	84.40B
Total Debt	133.94B	130.90B	135.61B	140.12B	116.39B	84.39B
Total Liabilities	348.39B	338.92B	325.98B	316.63B	282.30B	227.79B
Stockholders Equity	333.77B	285.97B	201.88B	146.04B	138.25B	93.40B
Cash Flow
Free Cash Flow	13.48B	32.88B	32.22B	-16.89B	-14.73B	25.92B
Operating Cash Flow	121.14B	115.88B	84.95B	46.75B	46.33B	66.06B
Investing Cash Flow	-123.57B	-94.34B	-49.83B	-37.60B	-58.15B	-59.61B
Financing Cash Flow	-8.65B	-11.81B	-15.88B	9.72B	6.29B	-1.10B

Amazon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 231.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 231.03 is above the 20-day moving average (MA) of 225.72, above the 50-day MA of 221.14, and above the 200-day MA of 211.30, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 59.68 is Neutral, neither overbought nor oversold. The STOCH value of 88.19 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
AMZN	81 Outperform	$2.46T	35.26	24.77%	―	10.87%	56.13%
BABA	79 Outperform	$296.99B	16.01	13.04%	1.63%	5.17%	74.55%
PDD	78 Outperform	$165.19B	12.81	36.31%	―	35.04%	22.04%
JD	76 Outperform	$49.38B	8.95	17.26%	3.09%	8.13%	91.39%
MELI	73 Outperform	$121.28B	59.08	43.83%	―	38.27%	46.21%
SE	71 Outperform	$104.95B	89.95	14.48%	―	34.12%	―
Sector *	56 Neutral	HK$25.45B	5.07	-2.69%	5.60%	-0.43%	-53.15%

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.