Amazon (AMZN) AI Stock Analysis

• Market Cap: $2.56T
• Dividend Yield: N/A
• Average Volume (3M): 34.62M
• Price to Earnings (P/E): 33.8
• Beta (1Y): 1.42
• Revenue Growth: 11.48%
• EPS Growth: 50.70%
• Country: US
• Employees: 1,560,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.95
• Shares Outstanding: 10,690,216,000
• 10 Day Avg. Volume: 36,087,608
• 30 Day Avg. Volume: 34,620,084
• 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: 3.80
• Enterprise Value/Gross Profit: 7.59
• Enterprise Value/Ebitda: 16.72
• 1Y Price Target: $295.19
• Price Target Upside: 22.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 46
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $269.00 ▲(11.28% Upside)

Amazon's overall stock score is driven by strong financial performance and positive earnings call sentiment, particularly in AWS and advertising growth. However, technical analysis indicates short-term weakness, and the high P/E ratio suggests a premium valuation. Cash flow management remains an area for improvement.

Positive Factors

AWS Growth

AWS's robust growth underscores its critical role in Amazon's profitability, providing a durable competitive advantage in the cloud computing market.

Innovation in Grocery Delivery

Expansion in grocery delivery enhances Amazon's market position, leveraging logistics capabilities to capture more of the consumer grocery market.

Advertising Revenue Growth

Strong growth in advertising revenue highlights Amazon's ability to monetize its platform, providing a high-margin revenue stream that supports overall profitability.

Negative Factors

Special Charges Impacting Operating Income

Significant special charges can strain financial performance, impacting cash flow and potentially limiting investment in growth initiatives.

Decline in Free Cash Flow

A decline in free cash flow can hinder Amazon's ability to fund strategic initiatives and respond to competitive pressures, affecting long-term growth.

Headcount Adjustments

Headcount reductions may disrupt operations and morale, potentially impacting productivity and innovation in the short to medium term.

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 a diversified business model, with key revenue streams including e-commerce sales, subscription services, and cloud computing. The e-commerce segment earns money from retail sales of products and services sold directly by Amazon, as well as commissions from third-party sellers who list their products on Amazon's marketplace. Subscription services, notably Amazon Prime, provide a steady income through membership fees, offering benefits like free shipping and access to streaming content. Additionally, Amazon Web Services (AWS) is a significant revenue driver, providing cloud computing services and solutions to businesses and government agencies. The company also earns from advertising services, allowing brands to promote their products on Amazon's platform. Strategic partnerships and collaborations, such as those with payment processors and content creators, further enhance its earnings potential.

Amazon Financial Statement Overview

Summary

Amazon's financial performance is robust, with strong profitability and growth metrics. The income statement reflects efficient operations and solid revenue growth. The balance sheet is stable, with a balanced leverage position and strong equity returns. However, cash flow management needs attention, particularly in improving Free Cash Flow.

Income Statement

Amazon's income statement shows strong profitability and growth. The TTM (Trailing-Twelve-Months) Gross Profit Margin is robust at 49.6%, indicating efficient cost management. The Net Profit Margin has improved to 10.5%, reflecting enhanced profitability. Revenue growth is steady at 3.2% TTM, following a significant growth trend in previous years. The EBIT and EBITDA margins are healthy at 12.7% and 21.4% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is solid with a manageable Debt-to-Equity Ratio of 0.40 TTM, indicating a balanced approach to leveraging. Return on Equity is strong at 23.6%, reflecting effective use of equity to generate profits. The Equity Ratio stands at 50.8%, suggesting a stable capital structure. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Cash flow analysis reveals a mixed picture. Operating Cash Flow is strong, but Free Cash Flow has declined by 21.7% TTM, indicating potential challenges in cash generation. The Operating Cash Flow to Net Income Ratio is healthy at 0.65, suggesting good cash conversion. However, the Free Cash Flow to Net Income Ratio is lower at 0.11, highlighting the need for improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	691.33B	637.96B	574.78B	513.98B	469.82B	386.06B
Gross Profit	345.98B	311.67B	270.05B	225.15B	197.48B	152.76B
EBITDA	157.14B	123.81B	89.40B	38.35B	74.39B	51.01B
Net Income	76.48B	59.25B	30.43B	-2.72B	33.36B	21.33B
Balance Sheet
Total Assets	727.92B	624.89B	527.85B	462.68B	420.55B	321.19B
Cash, Cash Equivalents and Short-Term Investments	94.20B	101.20B	86.78B	70.03B	96.05B	84.40B
Total Debt	135.42B	130.90B	135.61B	140.12B	116.39B	84.39B
Total Liabilities	358.29B	338.92B	325.98B	316.63B	282.30B	227.79B
Stockholders Equity	369.63B	285.97B	201.88B	146.04B	138.25B	93.40B
Cash Flow
Free Cash Flow	10.56B	32.88B	32.22B	-16.89B	-14.73B	25.92B
Operating Cash Flow	130.69B	115.88B	84.95B	46.75B	46.33B	66.06B
Investing Cash Flow	-132.74B	-94.34B	-49.83B	-37.60B	-58.15B	-59.61B
Financing Cash Flow	-5.94B	-11.81B	-15.88B	9.72B	6.29B	-1.10B

Amazon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 241.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 241.73 is above the 20-day moving average (MA) of 239.08, above the 50-day MA of 232.54, and above the 200-day MA of 221.78, indicating a bullish trend. The MACD of 2.05 indicates Negative momentum. The RSI at 52.88 is Neutral, neither overbought nor oversold. The STOCH value of 69.24 is Neutral, 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
GOOG	82 Outperform	$4.08T	33.41	35.45%	0.26%	13.55%	34.26%
SHOP	77 Outperform	C$233.18B	95.23	15.74%	―	33.71%	28.57%
MSFT	74 Outperform	$3.20T	27.12	34.39%	0.71%	15.59%	15.89%
AMZN	71 Outperform	$2.56T	33.81	24.33%	―	11.48%	50.70%
EBAY	70 Outperform	$41.23B	20.55	42.43%	1.38%	4.89%	17.30%
BABA	68 Neutral	$364.47B	23.24	12.39%	1.31%	5.14%	50.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Amazon Corporate Events

Amazon Closes $14.961 Billion Notes Sale

On November 20, 2025, Amazon.com, Inc. successfully closed the sale of $14.961 billion in aggregate principal amount of notes with varying maturity dates ranging from 2028 to 2065. This financial move, involving major underwriters such as Goldman Sachs, J.P. Morgan, and Morgan Stanley, is expected to generate approximately $14.926 billion in net proceeds, potentially impacting Amazon’s financial strategy and market positioning.

The most recent analyst rating on (AMZN) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Amazon stock, see the AMZN Stock Forecast page.