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:2026-06-03 17:39:44
Analysis based on real data for Amazon.com, Inc. (AMZN) as of 2026-06-04. Financial analysis uses 5 quarterly reports: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Stock price data as of 2026-06-03 close.
Overview

Amazon.com, Inc. (AMZN) is a global leader in e-commerce, cloud computing, digital streaming, and AI, operating through North America, International, and AWS segments. The company is in a powerful fundamental upswing with accelerating revenue growth, dramatic margin expansion, and extraordinary profit growth, supported by superb profitability metrics and a robust financial condition with moderate leverage.

Valuation
7/10
Profitability
10/10
Financial health
7/10
Operation Advice
  • The recent pullback from highs near $275 to the current $250.02 level presents an attractive entry point.
  • Based on fundamental analysis, a 12-month target price of $302 is projected, implying approximately 21% upside potential.
  • Investors should consider buying on this pullback for long-term growth.

Valuation

P/E TTM
28.83
P/E LYR
43.62
P/B MRQ
5.45
P/S TTM
--
AI Analysis
  • The stock trades at elevated absolute P/E multiples (TTM: 28.83x, Forward: 43.62x) which are justified by the company's high growth rate, market leadership, and financial performance. The PEG ratio suggests potential value, and the stock is not overvalued relative to its quality and growth profile, with a fundamental-based target price of $302.
  • Current Price: $250.02 (as of 2026-06-03 close).
  • P/E (TTM): 28.83x. This is elevated compared to the market average but must be contextualized against the company's high growth rate.
  • Forward P/E (Dynamic): 43.62x. This higher multiple likely reflects market expectations for continued strong earnings growth beyond the TTM period.
  • P/B Ratio: 5.45x. This premium to book value is justified by the company's exceptionally high ROE (23.59%).
  • P/S Ratio (TTM): 3.62x. This is reasonable for a high-margin, high-growth market leader in its sector.
  • A crude PEG ratio using recent net profit growth of 76.65% is very low (~0.38), suggesting the stock is cheap relative to its recent growth.
  • Using a more normalized growth expectation (31.09%), the PEG ratio is approximately 0.93, still indicating potential value.
  • The stock has traded between approximately $199.14 and $278.56 over the last 60 days, with a recent pullback to $250.02.
  • Based on strong fundamental trajectory, the stock does not appear overvalued relative to its quality and growth profile.
  • Reasonable 12-Month Price Range: $285 - $320. Fundamental-Based Target Price: $302.
Valuation trend

Profitability

ROE TTM
23.59%
Net margin
16.67%
Gross margin
51.82%
Total revenue
181.52B
AI Analysis
  • Amazon demonstrates exceptionally strong and accelerating profitability with robust revenue growth, significant margin expansion, spectacular net income growth, and outstanding return metrics indicating highly efficient use of capital and assets.
  • Revenue growth has accelerated from 8.62% YoY in Q1 2025 to 16.61% YoY in Q1 2026 ($181.52B), indicating robust top-line expansion.
  • Both gross margin and net margin have shown consistent improvement.
  • The Q1 2026 net margin of 16.67% is a significant increase from 11.00% in Q1 2025, highlighting impressive operational efficiency and scale.
  • Net income growth is spectacular, with a 76.65% YoY increase in Q1 2026 ($30.25B).
  • This trend of high double-digit profit growth has been consistent over the last five reported quarters.
  • The TTM Return on Equity (ROE) of 23.59% and Return on Assets (ROA) of 11.55% are outstanding.
  • These return metrics indicate highly efficient use of shareholder capital and company assets to generate profits.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--11.39%17.23%22.29%23.59%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue155.67B323.37B503.54B716.92B181.52B

Financial health

Debt/Asset
51.79%
Current ratio
1.18
Quick ratio
1.01
Cash ratio
1.01
AI Analysis
  • The company's financial health is robust but shows some liquidity constraints typical for a high-volume retailer, with a moderate level of leverage that is manageable for a cash-generative company, suggesting overall financial stability.
  • The current ratio of 1.18 and quick ratio of 1.01 indicate adequate, but not excessive, short-term liquidity to cover obligations.
  • This liquidity profile is typical for a high-volume retailer managing inventory.
  • A debt-to-assets ratio of 51.79% reflects a moderate level of leverage.
  • This is a manageable capital structure for a cash-generative company like Amazon, allowing it to fund growth and investments while providing returns to shareholders.
  • The balance between profitability (high ROA/ROE) and this leverage suggests a financially stable company capable of servicing its debt.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset52.45%51.07%49.22%49.75%51.79%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.051.021.011.051.18