Amazon (AMZN) AI Stock Analysis

• Market Cap: $2.44T
• Dividend Yield: N/A
• Average Volume (3M): 46.43M
• Price to Earnings (P/E): 35.0
• Beta (1Y): 1.35
• 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: 42,080,454
• 30 Day Avg. Volume: 46,434,542
• 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: 0.99
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: 16.88
• 1Y Price Target: $269.24
• Price Target Upside: 17.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 41

• Rating: 77 Outperform
• Price Target: $251.00 ▲(9.49% Upside)

Amazon's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust growth and strategic advancements. However, high valuation and mixed technical indicators temper the score, suggesting potential risks in market conditions and valuation levels.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates Amazon's expanding market reach and product adoption, supporting its long-term business sustainability.

AWS Growth

AWS's strong growth underscores its critical role in Amazon's profitability and competitive edge in the cloud computing market.

Advertising Revenue

The robust growth in advertising revenue highlights Amazon's ability to monetize its platform effectively, enhancing its revenue streams.

Negative Factors

AWS Margin Decline

Declining AWS margins may pressure Amazon's profitability, as AWS is a significant contributor to the company's earnings.

Supply Constraints in AWS

Supply constraints in AWS could hinder its growth and service delivery, impacting customer satisfaction and future revenue.

Tariff Uncertainty

Tariff uncertainties could increase costs and affect pricing strategies, posing risks to Amazon's international operations and profitability.

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 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: Positive
• Last Price: 229.25
• 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 229.25 is above the 20-day moving average (MA) of 220.60, above the 50-day MA of 225.02, and above the 200-day MA of 214.26, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 90.85 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
BABA	―	$420.13B	19.98	15.22%	1.10%	5.48%	128.65%
AMZN	―	$2.44T	34.99	24.77%	―	10.87%	56.13%
PDD	―	$191.69B	15.05	31.78%	―	20.09%	-1.83%
MELI	―	$116.10B	56.55	43.83%	―	38.27%	46.21%
SE	―	$94.55B	81.04	14.48%	―	34.12%	―
CPNG	―	$56.79B	159.82	8.55%	―	18.69%	-65.55%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Amazon Corporate Events

Robert Bender&Associates Reduces Stake in Amazon

Barton Investment Management Reduces Stake in Amazon

TRB Advisors LP Reduces Stake in Amazon

Manitou Investment Boosts Amazon Stake with 4,574 Shares

Duquesne Family Office LLC Reduces Amazon Holdings

Pershing Square Boosts Amazon Stake with 5.8M Shares

Viking Global Investors LP Boosts Stake in Amazon

Maverick Capital Ltd Boosts Stake in Amazon

Lone Pine Capital LLC Increases Stake in Amazon

Glenview Capital Reduces Stake in Amazon

Soros Fund Management LLC Reduces Stake in Amazon

Appaloosa Management LP Boosts Stake in Amazon

ValueAct Holdings LP Increases Stake in Amazon

Clough Capital Partners Boosts Stake in Amazon

Coatue Management Reduces Stake in Amazon by 596,184 Shares

Chilton Investment Co LLC Reduces Stake in Amazon

Ardsley Advisory Partners Increases Stake in Amazon

Altimeter Capital Boosts Amazon Stake with 419,708 Shares

Owl Creek Boosts Amazon Stake with 97,929 Shares

Driehaus Capital Management Reduces Stake in Amazon

Corvex Management LP Boosts Stake in Amazon

Farallon Capital Boosts Amazon Stake with 3M Shares

Eminence Capital LLC Boosts Stake in Amazon

Eagle Capital Management Reduces Stake in Amazon

Night Owl Capital Boosts Stake in Amazon

Graham Capital Management Boosts Amazon Stake by 44,702 Shares

Blue Grotto Capital Boosts Stake in Amazon

Altarock Partners Llc Boosts Stake in Amazon

Kensico Capital Reduces Stake in Amazon

Atreides Management, LP Increases Stake in Amazon

Woodline Partners LP Boosts Stake in Amazon

Blackstone Inc. Reduces Stake in Amazon

XN LP Increases Stake in Amazon with 262,992 Shares

Gilder Gagnon Howe Reduces Amazon Holdings by 35,474 Shares

Theleme Partners Llp Reduces Stake in Amazon

D1 Capital Partners LP Reduces Stake in Amazon

Moore Capital Management LP Boosts Stake in Amazon

Mairs & Power Inc Boosts Stake in Amazon

Tiger Global Management LLC Boosts Stake in Amazon

Gamco Investors Boosts Stake in Amazon with 22,267 Shares

Columbus Hill Capital Boosts Amazon Stake by 96,000 Shares

Fisher Asset Management Reduces Stake in Amazon

Gladstone Capital Boosts Amazon Stake with 68,287 Shares

Vulcan Value Partners Boosts Amazon Stake by 184,502 Shares

MIG Capital Increases Stake in Amazon.com, Inc.

SCS Capital Management Boosts Stake in Amazon

Crake Asset Management LLP Boosts Stake in Amazon

Dodge & Cox Increases Stake in Amazon with 59,518 Shares

Sands Capital Management Reduces Amazon Stake Significantly

Bridgewater Associates Reduces Stake in Amazon

Egerton Capital Reduces Amazon Holdings by 884,482 Shares

Diamond Hill Capital Boosts Stake in Amazon

Bowie Capital Management Reduces Stake in Amazon

PRIMECAP Management Co Increases Stake in Amazon

Davis Selected Advisers Reduces Stake in Amazon

Generation Investment Management LLP Reduces Amazon Holdings

Suncoast Equity Management Increases Stake in Amazon

Amazon Q2 2025 Earnings: Strong Growth Amid Challenges

Amazon’s recent earnings call for Q2 2025 paints a picture of robust growth and strategic advancements, despite facing some operational challenges. The overall sentiment was positive, driven by impressive revenue growth and significant improvements in operating income, largely attributed to the success of Prime Day and expansion in AWS and advertising sectors. However, the company is navigating through challenges such as AWS margin declines and supply constraints, which slightly dampen the otherwise optimistic outlook.

Antipodes Partners Ltd Reduces Stake in Amazon

First Pacific Advisors LLC Boosts Stake in Amazon

Amazon Reports Strong Q2 2025 Financial Results

Amazon.com, Inc., a leading global e-commerce and cloud computing company, has announced its financial results for the second quarter of 2025, highlighting significant growth across its various business segments. The company, known for its customer-centric approach and innovative technologies, operates in the retail and technology sectors, offering a wide range of products and services including AWS, Prime Video, and Alexa.

TRB Advisors LP Boosts Stake in Amazon with 100,000 Shares

ARK Investment Management LLC Boosts Amazon Holdings

Progressive Investment Management Corp Reduces Amazon Holdings

Manitou Investment Management Ltd. Reduces Amazon Holdings