Amazon (AMZN)
NASDAQ:AMZN
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Amazon
(NASDAQ:AMZN)
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Rating:73Outperform
Price Target:
$267.00
▲(7.44% Upside)
Action:ReiteratedDate:04/14/26
AMZN scores well on improving profitability/scale and supportive earnings-call fundamentals (re-accelerating AWS, strong backlog, ads strength), which are the biggest positives. The score is held back by volatile free cash flow amid heavy reinvestment, technically overbought conditions that add near-term risk, and a premium valuation (P/E ~31.7) that reduces margin for error.
Positive Factors
AWS accelerating high‑margin growth
AWS is the company’s highest‑margin, durable engine: accelerating 24% YoY growth and ~35% operating margin indicate sustained enterprise demand for cloud and AI infrastructure. This creates predictable, high‑return cash pools that underpin long‑term reinvestment and competitive differentiation.
Negative Factors
Free cash flow volatility and weaker 2025 FCF
Sharp year‑over‑year FCF decline highlights cash conversion volatility tied to heavy reinvestment and working‑capital swings. Lower near‑term free cash reduces buffer for opportunistic investments or buybacks and raises sensitivity to execution risk while CapEx remains elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
AWS accelerating high‑margin growth
AWS is the company’s highest‑margin, durable engine: accelerating 24% YoY growth and ~35% operating margin indicate sustained enterprise demand for cloud and AI infrastructure. This creates predictable, high‑return cash pools that underpin long‑term reinvestment and competitive differentiation.
Read all positive factors
Amazon (AMZN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.67T
Dividend YieldN/A
Average Volume (3M)43.58M
Price to Earnings (P/E)31.7
Beta (1Y)1.48
Revenue Growth11.48%
EPS Growth50.70%
CountryUS
Employees1,560,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.95
Shares Outstanding10,734,921,000
10 Day Avg. Volume40,545,138
30 Day Avg. Volume43,583,376
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 Cap1.02
Enterprise Value/Revenue3.81
Enterprise Value/Gross Profit7.58
Enterprise Value/Ebitda16.53
Forecast
1Y Price Target
$284.76Price Target Upside14.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering45
EPS Forecast (FY)7.75
Revenue Forecast (FY)$805.85B
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 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 Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call emphasized accelerating growth in AWS (24% YoY) and strong momentum across AI infrastructure, chips, advertising, and retail innovations. Key topline and cash flow metrics improved (revenue +12% ex-FX; operating cash flow +20% YoY), and product traction (Bedrock, Trainium/Graviton, agents, Prime delivery improvements) points to durable long-term opportunities. Near-term headwinds include $2.4 billion of special charges (tax, severance, store impairments), heavy planned capital expenditures (~$200 billion) that may pressure free cash flow in the short term, and ongoing Amazon LEO and AI capacity build costs that are currently expensed. Overall, the positives around accelerated AWS/AI demand, strong ads and retail performance, and a large committed investment program outweigh the near-term charges and capital intensity, suggesting constructive long-term prospects despite near-term expense and capacity constraints.Positive Updates
Revenue and Overall Profitability
Worldwide revenue of $213.4 billion, up 12% year-over-year (ex-FX). Reported operating income of $25.0 billion. Trailing twelve-month free cash flow was $11.2 billion. Full-year operating cash flow rose to $139.5 billion, up 20% year-over-year.
Negative Updates
Special Charges Reduced Operating Income
Q4 operating income included $2.4 billion of special charges: $1.1 billion for tax dispute resolution and lawsuit (primarily international/stores), $730 million estimated severance (across segments), and $610 million of asset impairments (primarily physical stores). These charges materially reduced reported operating income in the quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and Overall Profitability
Worldwide revenue of $213.4 billion, up 12% year-over-year (ex-FX). Reported operating income of $25.0 billion. Trailing twelve-month free cash flow was $11.2 billion. Full-year operating cash flow rose to $139.5 billion, up 20% year-over-year.
Read all positive updates
Company Guidance
The company guided Q1 net sales of $173.5–$178.5 billion (anticipating a roughly 180 basis‑point favorable FX impact) and provided a Q1 operating income range in the call transcript (the transcript’s figure appears garbled), reiterated a plan to invest about $200 billion of capital expenditures (predominantly in AWS), and flagged an approximately $1 billion year‑over‑year North America cost increase in Q1 related to Amazon LEO (with >20 LEO launches planned in 2026, >30 in 2027 and commercial service expected in 2026); the guidance reflects current order trends, assumes no additional acquisitions/restructurings/legal settlements, and is subject to risks from FX, energy, macro conditions and other factors.Amazon Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 716.92B | 637.96B | 574.78B | 513.98B | 469.82B |
| Gross Profit | 360.51B | 311.67B | 270.05B | 225.15B | 197.48B |
| EBITDA | 165.34B | 123.81B | 89.40B | 38.35B | 74.39B |
| Net Income | 77.67B | 59.25B | 30.43B | -2.72B | 33.36B |
Balance Sheet | |||||
| Total Assets | 818.04B | 624.89B | 527.85B | 462.68B | 420.55B |
| Cash, Cash Equivalents and Short-Term Investments | 123.03B | 101.20B | 86.78B | 70.03B | 96.05B |
| Total Debt | 152.99B | 130.90B | 135.61B | 140.12B | 116.39B |
| Total Liabilities | 406.98B | 338.92B | 325.98B | 316.63B | 282.30B |
| Stockholders Equity | 411.06B | 285.97B | 201.88B | 146.04B | 138.25B |
Cash Flow | |||||
| Free Cash Flow | 7.70B | 32.88B | 32.22B | -16.89B | -14.73B |
| Operating Cash Flow | 139.51B | 115.88B | 84.95B | 46.75B | 46.33B |
| Investing Cash Flow | -142.54B | -94.34B | -49.83B | -37.60B | -58.15B |
| Financing Cash Flow | 9.66B | -11.81B | -15.88B | 9.72B | 6.29B |
Amazon Technical Analysis
Positive
248.50
Price Trends
213.67
Positive
223.31
Positive
225.28
Positive
Market Momentum
8.16
Negative
75.64
Negative
94.68
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 248.5 is above the 20-day moving average (MA) of 217.34, above the 50-day MA of 213.67, and above the 200-day MA of 225.28, indicating a bullish trend. The MACD of 8.16 indicates Negative momentum. The RSI at 75.64 is Negative, neither overbought nor oversold. The STOCH value of 94.68 is Negative, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.06T | 28.69 | 35.00% | 0.26% | 13.55% | 34.26% | |
74 Outperform | $3.05T | 23.36 | 33.61% | 0.71% | 16.67% | 28.60% | |
73 Outperform | $2.67T | 31.67 | 21.87% | ― | 11.48% | 50.70% | |
69 Neutral | $276.84B | 36.81 | 8.82% | 1.31% | 5.14% | 50.76% | |
69 Neutral | C$228.47B | 166.89 | 10.02% | ― | 33.71% | 28.57% | |
67 Neutral | $44.80B | 19.34 | 42.68% | 1.38% | 4.89% | 17.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
AMZN
Amazon
248.50
75.89
43.97%
EBAY
eBay
100.01
34.67
53.06%
MSFT
Microsoft
411.22
45.40
12.41%
BABA
Alibaba
133.28
26.20
24.47%
TSE:SHOP
Shopify
175.19
59.16
50.99%
GOOG
Alphabet Class C
334.47
181.64
118.85%
Amazon Corporate Events
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.