Amazon.com, Inc.(AMZN) - Stock detail

Amazon.com, Inc.

US
AMZN
Amazon.com, Inc.(Listing date: 05/15/1997)

Amazon was founded in Washington State in 1994 and reincorporated in Delaware in 1996. The company strives to be the most customer-centric company on Earth. It follows four principles: customer obsession rather than competitor focus; passion for invention; commitment to operational excellence; and long-term thinking. In each of its market segments, it serves its primary customer groups, including consumers, sellers, developers, enterprises, and content creators. Additionally, the company offers advertising services such as sponsored ads, display, and video ads to sellers, vendors, publishers, and authors through programs. The company organizes its operations into three segments: North America, International, and Amazon Web Services ("AWS"). It serves consumers through its online and physical stores, focusing on selection, price, and convenience. The company provides programs that enable sellers to grow their businesses, sell products in its stores, and fulfill orders. Through its AWS segment, the company serves developers and enterprises of all sizes, including startups, government agencies, and academic institutions, offering a broad set of global compute, storage, database, and other service offerings.

AI Value AnalystBuy
Overall Rating8/10
Generated at:2026-03-04 16:34:59
Analysis based on 5 financial reports from 2024-12-31 to 2025-12-31, including quarterly reports from 2025-03-31, 2025-06-30, 2025-09-30, and annual reports from 2024-12-31 and 2025-12-31. Real-time market data as of 2026-03-04 close. Comprehensive fundamental analysis using complete financial dataset.
Overview

Amazon.com, Inc. (AMZN) demonstrates strong fundamental performance with robust revenue growth, expanding margins, improving profitability, and solid financial health. The company maintains a dominant market position across e-commerce, cloud computing, and digital services with multiple revenue streams and competitive advantages.

Valuation
7/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Buy at current price of $216.82 with short-term target of $225-$235, medium-term target of $240-$260, and stop-loss at $200.
  • Current valuation represents an attractive entry point given the company's growth trajectory and strong fundamentals.

Valuation

P/E TTM
28.83
P/E LYR
43.62
P/B MRQ
5.45
P/S TTM
--
AI Analysis
  • Amazon trades at forward PE of 43.62 and trailing PE of 28.83, which while elevated reflects the company's premium growth profile. Based on 2025 EPS of $7.17 and growth projections, fair value range is $215-$245 with target price of $230-$240 representing 6-11% upside potential.
  • Forward PE: 43.62 (dynamic)
  • Trailing PE: 28.83 (TTM)
  • Price/Book: 5.45x - reasonable for a high-growth technology company
  • Price/Sales: 3.24x - justified by strong margin expansion potential
  • Stock has traded between $197-$247 over past 60 days, current price near lower end of range
  • Based on 2025 EPS of $7.17 (diluted), trades at approximately 30x earnings
  • Considering 20-25% earnings growth projection for 2026, forward PE becomes more reasonable at 24-26x
  • Fair value range: $215-$245 based on 30-34x forward earnings multiple
  • Target price: $230-$240 (12-month outlook) representing 6-11% upside potential
Valuation trend

Profitability

ROE TTM
22.29%
Net margin
10.83%
Gross margin
50.29%
Total revenue
716.92B
AI Analysis
  • Amazon exhibits exceptional and improving profitability with consistent double-digit revenue growth, margin expansion, and strong net income growth. The company shows effective cost management and efficient capital allocation with improving return metrics.
  • Revenue growth: Consistent double-digit growth with 12.38% YoY increase to $716.92B (2025)
  • Margin expansion: Gross margin improved to 50.29% (2025) from 48.85% (2024)
  • Net income growth: 31.09% YoY increase to $77.67B (2025)
  • Continuing strong momentum from 94.73% growth in 2024
  • Return metrics: ROE of 22.29% (TTM) indicates efficient capital allocation
  • Operating leverage: Improving net margins from 9.29% (2024) to 10.83% (2025)
  • Quarterly progression shows consistent improvement across all profitability metrics
  • Indicates sustainable growth momentum
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--5.79%11.39%17.23%22.29%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue637.96B155.67B323.37B503.54B716.92B

Financial health

Debt/Asset
49.75%
Current ratio
1.05
Quick ratio
0.88
Cash ratio
0.88
AI Analysis
  • Amazon demonstrates strong financial health with balanced capital structure, moderate debt levels, adequate liquidity, strong asset efficiency, and consistent cash flow generation supporting operations and investments.
  • Debt management: Moderate debt levels with 49.75% debt-to-equity ratio
  • Liquidity position: Current ratio of 1.05 and quick ratio of 0.88 indicate adequate short-term liquidity
  • Asset efficiency: Strong asset utilization with ROA of 10.77% (TTM)
  • Cash flow generation: Consistent profitability supports ongoing operations and investments
  • Maintains sufficient liquidity to fund operations while continuing to invest in growth initiatives
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset54.24%52.45%51.07%49.22%49.75%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.061.051.021.011.05