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Amazon
(NASDAQ:AMZN)
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Rating:73Outperform
Price Target:
$286.00
▲(9.55% Upside)
Action:Reiterated
Date:09/14/26
The score is driven primarily by improving profitability/returns and strong operating cash flow, reinforced by a bullish earnings call centered on accelerating AWS/AI demand and solid guidance. Offsetting factors are negative TTM free cash flow and rising funding needs from very large CapEx plans, while technicals are neutral-to-soft and valuation is reasonable but lacks dividend support.
Positive Factors
AWS scale and acceleration
AWS combines accelerating revenue, a large contracted backlog, and approximately 39% operating margin, providing Amazon with a durable, high-value growth engine. Continued cloud, AI, and infrastructure demand can support stronger consolidated profitability and reinvestment capacity over the next several quarters.
Negative Factors
Very high investment intensity
The sharply increased infrastructure commitment is necessary to capture AI and AWS demand, but it has pushed near-term free cash flow negative and raises execution requirements. Returns depend on monetizing data centers and servers over time, leaving cash conversion pressured during the build-out period.
Read all positive and negative factors
Positive Factors
Negative Factors
AWS scale and acceleration
AWS combines accelerating revenue, a large contracted backlog, and approximately 39% operating margin, providing Amazon with a durable, high-value growth engine. Continued cloud, AI, and infrastructure demand can support stronger consolidated profitability and reinvestment capacity over the next several quarters.
Read all positive factors
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 (AMZN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.69T
Dividend YieldN/A
Average Volume (3M)33.12M
Price to Earnings (P/E)19.5
Beta (1Y)1.47
Revenue Growth15.77%
EPS Growth88.63%
CountryUS
Employees1,576,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)12.60
Shares Outstanding10,786,313,000
10 Day Avg. Volume38,259,021
30 Day Avg. Volume33,116,249
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$331.16Price Target Upside26.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering41
EPS Forecast (FY)12.77
Revenue Forecast (FY)$828.59B
Amazon Business Overview & Revenue Model
Company Description
Amazon.com, Inc. operates a vast global retail enterprise, distributing consumer goods and subscription services through both its extensive online platforms and a network of physical stores across North America and internationally. Its operations ...
How the Company Makes Money
Amazon makes money through multiple large, diversified revenue streams. (1) Online and physical stores: It sells products directly to consumers (first-party retail), earning revenue from the sale price of goods, including through Amazon-branded pr...
Amazon Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a dominant positive tone: very strong top-line growth (revenue +20%), outsized AWS acceleration (AWS revenue +36.7%, large backlog and run-rates), robust AI and chip momentum (multiple >$25B run-rates and triple-digit YoY growth), broad product traction across stores, ads, and new AI services, and a clear long-term capital plan tied to expected attractive ROIC. Offsetting risks are meaningful: a sharp increase in CapEx (raised to ~$220B), near-term free cash flow pressure, persistent capacity constraints, elevated logistics and component costs, and some one-time accounting/timing benefits that boosted Q2 results. Overall, highlights materially outweigh the lowlights given exceptional demand, product adoption, and long-term growth visibility.Positive Updates
Strong Overall Financial Performance
Worldwide revenue $200.6B, up 20% year-over-year; operating income $27.5B, up 43% year-over-year. Worldwide paid units grew 17% year-over-year.
Negative Updates
Very Large CapEx and Short-Term Free Cash Flow Pressure
Cash CapEx expected to be ~ $220B in 2026 (up from prior ~$200B estimate) with Q2 cash CapEx $53.1B. Management warns heavy near-term CapEx will pressure free cash flow until data centers and servers are monetized.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Overall Financial Performance
Worldwide revenue $200.6B, up 20% year-over-year; operating income $27.5B, up 43% year-over-year. Worldwide paid units grew 17% year-over-year.
Read all positive updates
Company Guidance
Amazon guided Q3 net sales of $197 billion to $202 billion and operating income of $22.5 billion to $26.5 billion, saying the guidance reflects current order trends and assumes no additional acquisitions, restructurings, or legal settlements; management noted the sequential sales deceleration from Q2 (Q2 revenue $200.6B; operating income $27.5B) was driven by Prime Day timing (if you adjust for Prime Day, Q3 YoY growth would be ~400 basis points higher) and expects an unfavorable ~80 basis point FX impact year‑over‑year, while reiterating 2026 cash CapEx is now expected at ≈$220 billion (up from ≈$200B) with $53.1B spent in Q2 and that even at $220B capacity will be constrained into 2026 (likely 2027), supported by AWS metrics such as $42.2B Q2 AWS revenue (+36.7% YoY), a $169B AWS annualized run rate, and a $496B AWS backlog.Amazon Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 775.68B | 716.92B | 637.96B | 574.78B | 513.98B | 469.82B |
| Gross Profit | 393.81B | 360.51B | 311.67B | 270.05B | 225.15B | 197.48B |
| EBITDA | 254.00B | 165.34B | 123.81B | 89.40B | 38.35B | 74.39B |
| Net Income | 135.28B | 77.67B | 59.25B | 30.43B | -2.72B | 33.36B |
Balance Sheet | ||||||
| Total Assets | 1.10T | 818.04B | 624.89B | 527.85B | 462.68B | 420.55B |
| Cash, Cash Equivalents and Short-Term Investments | 122.99B | 123.03B | 101.20B | 86.78B | 70.03B | 96.05B |
| Total Debt | 223.23B | 152.99B | 130.90B | 135.61B | 140.12B | 116.39B |
| Total Liabilities | 544.07B | 406.98B | 338.92B | 325.98B | 316.63B | 282.30B |
| Stockholders Equity | 551.62B | 411.06B | 285.97B | 201.88B | 146.04B | 138.25B |
Cash Flow | ||||||
| Free Cash Flow | -11.63B | 7.70B | 32.88B | 32.22B | -16.89B | -14.73B |
| Operating Cash Flow | 161.40B | 139.51B | 115.88B | 84.95B | 46.75B | 46.33B |
| Investing Cash Flow | -216.78B | -142.54B | -94.34B | -49.83B | -37.60B | -58.15B |
| Financing Cash Flow | 75.16B | 9.66B | -11.81B | -15.88B | 9.72B | 6.29B |
Amazon Technical Analysis
Negative
261.06
Price Trends
256.15
Negative
254.14
Negative
240.94
Positive
Market Momentum
-2.35
Positive
41.24
Neutral
26.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMZN, the sentiment is Negative. The current price of 261.06 is above the 20-day moving average (MA) of 253.29, above the 50-day MA of 256.15, and above the 200-day MA of 240.94, indicating a neutral trend. The MACD of -2.35 indicates Positive momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 26.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $110.41B | 7.91 | 21.97% | ― | 13.53% | -2.42% | |
75 Outperform | $88.85B | 46.60 | 26.54% | 0.19% | 46.01% | -9.25% | |
73 Outperform | $2.69T | 19.54 | 30.50% | ― | 15.77% | 88.63% | |
62 Neutral | $36.03B | 16.57 | 6.63% | 3.76% | 7.23% | -57.76% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $274.78B | 23.79 | 7.04% | 0.97% | 7.76% | -49.08% | |
52 Neutral | $24.95B | -31.67 | -18.84% | ― | 9.92% | -309.73% |
* Consumer Cyclical Sector Average
AMZN
Amazon
246.15
26.58
12.11%
MELI
Mercadolibre
1,712.41
-624.53
-26.72%
JD
JD
26.61
-7.19
-21.27%
BABA
Alibaba
108.76
-68.37
-38.60%
PDD
PDD Holdings
78.49
-53.68
-40.61%
CPNG
Coupang
13.75
-18.45
-57.30%
Amazon Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Amazon Boosts UK Presence With Sterling Debt Offering
Positive
Sep 14, 2026
On September 14, 2026, Amazon closed the sale of £4.242 billion in sterling-denominated senior notes, comprising four tranches maturing between 2029 and 2045 with coupons ranging from 5.200% to 6.650%. The transaction, executed under a previo...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Amazon strengthens board with new cybersecurity director
Positive
Sep 9, 2026
On September 8, 2026, Amazon’s board elected cybersecurity executive Kevin R. Mandia as a director and appointed him to the Audit and Security Committees, reinforcing the company’s governance around risk and security. Mandia, who leads...
Business Operations and StrategyPrivate Placements and Financing
Amazon Issues $24.9 Billion in Long-Term Notes
Positive
Jul 9, 2026
On July 9, 2026, Amazon.com, Inc. completed the sale of multiple tranches of senior unsecured notes, including floating rate notes due 2029 and fixed-rate notes maturing between 2029 and 2066, under an underwriting agreement led by major investmen...
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.