Amazon (AMZN) AI Stock Analysis

• Market Cap: $2.34T
• Dividend Yield: N/A
• Average Volume (3M): 40.09M
• Price to Earnings (P/E): 33.5
• Beta (1Y): 1.37
• Revenue Growth: 10.87%
• EPS Growth: 56.13%
• Country: US
• Employees: 1,560,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.68
• Shares Outstanding: 10,664,912,000
• 10 Day Avg. Volume: 51,039,354
• 30 Day Avg. Volume: 40,088,201
• 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: 1.03
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: 16.88
• 1Y Price Target: $266.39
• Price Target Upside: 21.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 44

• Rating: 72 Outperform
• Price Target: $242.00 ▲(10.11% Upside)

Amazon's overall stock score is driven by its strong financial performance and positive earnings call sentiment. While technical analysis indicates potential short-term weakness, the company's robust growth in key segments like AWS and advertising, along with strategic advancements, support a positive outlook. The valuation reflects high investor expectations, which could pose risks if growth slows.

Positive Factors

AWS Revenue Growth

AWS's strong revenue growth highlights its critical role in Amazon's profitability and competitive positioning in the cloud computing market, ensuring sustained long-term growth.

Advertising Revenue Growth

The significant growth in advertising revenue underscores Amazon's ability to diversify its income streams and capitalize on its vast user base, enhancing long-term profitability.

Balance Sheet Strength

A strong balance sheet with manageable debt levels provides Amazon with financial flexibility to invest in growth opportunities and weather economic uncertainties.

Negative Factors

AWS Margin Decline

Declining AWS margins could pressure Amazon's profitability, as AWS is a key profit driver. This trend may impact long-term earnings if not addressed.

FTC Settlement Impact

The FTC settlement imposes significant financial penalties and operational changes, potentially affecting Amazon's Prime subscription model and customer trust long-term.

Supply Constraints in AWS

Ongoing supply constraints in AWS could limit growth and customer satisfaction, potentially hindering Amazon's competitive edge in the cloud market over time.

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 Services (AWS). Its products offered through its stores include merchandise and content purchased for resale; and products offered by third-party sellers The company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, Blink, eero, and Echo; and develops and produces media content. In addition, it offers programs that enable sellers to sell their products in its stores; and programs that allow authors, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, the company provides compute, storage, database, analytics, machine learning, and other services, as well as fulfillment, advertising, and digital content subscriptions. Additionally, it offers Amazon Prime, a membership program. The company serves consumers, sellers, developers, enterprises, content creators, and advertisers. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.

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 demonstrates strong financial performance with robust revenue growth and profitability. The income statement reflects a significant increase in revenue and healthy profit margins. The balance sheet shows manageable leverage with a solid debt-to-equity ratio, and 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	332.38B	311.67B	270.05B	225.15B	197.48B	152.76B
EBITDA	143.71B	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: Neutral
• Last Price: 219.78
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMZN, the sentiment is Neutral. The current price of 219.78 is below the 20-day moving average (MA) of 228.86, below the 50-day MA of 227.38, and above the 200-day MA of 214.75, indicating a neutral trend. The MACD of -1.67 indicates Positive momentum. The RSI at 39.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMZN.

Amazon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PDD	79 Outperform	$180.53B	14.17	27.06%	―	20.09%	-1.83%
SE	78 Outperform	$109.28B	93.66	12.43%	―	34.12%	―
MELI	74 Outperform	$125.14B	60.96	35.94%	―	38.27%	46.21%
BABA	74 Outperform	$408.17B	19.44	12.88%	1.15%	5.48%	128.65%
AMZN	72 Outperform	$2.34T	33.54	24.77%	―	10.87%	56.13%
CPNG	62 Neutral	$58.68B	162.08	7.79%	―	18.69%	-65.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%