Amazon (AMZN) AI Stock Analysis

• Market Cap: $2.43T
• Dividend Yield: N/A
• Average Volume (3M): 41.82M
• Price to Earnings (P/E): 32.1
• Beta (1Y): 1.41
• 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: 42,997,652
• 30 Day Avg. Volume: 41,823,368
• 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: 1.00
• Enterprise Value/Revenue: 3.52
• Enterprise Value/Gross Profit: 7.04
• Enterprise Value/Ebitda: 15.50
• 1Y Price Target: $296.12
• Price Target Upside: 30.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 45
• EPS Forecast (FY): 7.14
• Revenue Forecast (FY): $714.58B

• Rating: 71 Outperform
• Price Target: $240.00 ▲(5.56% 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. is a multinational technology company based in Seattle, Washington, primarily known for its e-commerce platform. Founded by Jeff Bezos in 1994, Amazon has expanded its business into various sectors including cloud computing (Amazon Web Services), digital streaming (Amazon Prime Video), artificial intelligence, and consumer electronics (such as Kindle and Echo devices). The company operates a vast online marketplace, offering a wide range of products and services to consumers, businesses, and third-party sellers globally.

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 strong, with robust revenue growth and profitability metrics. The income statement shows a significant revenue increase and healthy profit margins. The balance sheet reflects manageable leverage and efficient use of equity, 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	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: 227.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 227.35 is below the 20-day moving average (MA) of 228.09, below the 50-day MA of 229.27, and above the 200-day MA of 215.64, indicating a neutral trend. The MACD of -1.65 indicates Positive momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 36.19 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	$3.71T	30.44	35.45%	0.27%	13.55%	34.26%
MSFT	79 Outperform	$3.61T	34.57	32.24%	0.71%	15.59%	15.89%
SHOP	77 Outperform	C$304.37B	124.62	15.74%	―	33.71%	28.57%
AMZN	71 Outperform	$2.43T	32.12	24.33%	―	11.48%	50.70%
EBAY	70 Outperform	$38.27B	18.42	42.43%	1.37%	4.89%	17.30%
BABA	68 Neutral	$356.46B	19.97	12.39%	1.32%	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.