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 AnalystHold
Overall Rating6.3/10
Generated at:2026-06-11 17:40:32
Analysis based on 5 financial reports from periods ending 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Current stock price as of 2026-06-11 close. Data includes key financial ratios, profitability metrics, and valuation multiples derived from the provided reports.
Overview

Amazon.com, Inc. (AMZN) is a global leader in e-commerce, cloud computing, and AI, demonstrating exceptional profitability growth and margin expansion, particularly from its high-margin AWS and advertising segments. Its financial health is solid with moderate leverage, though short-term liquidity is adequate but not robust. The stock valuation is rich, reflecting high growth expectations, making the current risk/reward profile balanced.

Valuation
4/10
Profitability
9/10
Financial health
6/10
Operation Advice
  • Existing shareholders should HOLD as the fundamental story remains strong.
  • New investors may consider initiating a position on market pullbacks towards the $245-$255 support zone for a more favorable entry point, with a fundamental 12-month target price of $285.

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 a valuation anticipating continued high growth. The trailing P/E of 28.83 is not excessive given recent >75% earnings growth, while high P/B and P/S ratios are consistent with its business model. The current price is not cheap but does not appear egregiously overvalued relative to recent performance.
  • Forward P/E (Dynamic) is 43.62, which is elevated and reflects high growth expectations priced into the stock.
  • Trailing P/E (TTM) is 28.83, which is more reasonable relative to the company's recent explosive earnings growth of 76.65% in Q1.
  • Price-to-Book (P/B) is 5.45, which is high but typical for asset-light, high-return-on-equity technology and platform companies.
  • Price-to-Sales (P/S) is 3.49, which can be justified given the company's current net margins above 16% if sustainable.
  • The TTM P/E of 28.83 against a recent earnings growth rate of 76.65% would suggest a PEG well below 1, which could be considered attractive for a growth stock.
  • The current price does not appear to be egregiously overvalued relative to its recent performance, but it is not cheap.
  • A strong support zone appears around $237 - $245, based on 60-day trading data.
  • Recent resistance peaks were established in the $273 - $278 range in early May 2026.
  • A fundamental 12-month target price range is $251 - $314, with a base case target of $285.
Valuation trend

Profitability

ROE TTM
23.59%
Net margin
16.67%
Gross margin
51.82%
Total revenue
181.52B
AI Analysis
  • Amazon's profitability has shown remarkable and accelerating strength, with significant margin expansion and bottom-line growth far exceeding revenue growth, driven by high-margin segments like AWS and advertising.
  • Revenue growth has been consistently strong, with Q1 2026 showing a 16.61% year-over-year increase to $181.52B, outpacing previous quarters.
  • Net Margin reached 16.67% in Q1 2026, up from 11.00% in Q1 2025, indicating significant margin expansion.
  • Gross Margin is 51.82%, contributing to the strong net margin.
  • Net Income grew 76.65% year-over-year in Q1 2026 to $30.25B, far exceeding revenue growth.
  • The explosive bottom-line growth highlights successful cost management and a favorable mix shift toward higher-margin businesses.
  • Return on Equity (ROE) is 23.59% (TTM), indicating highly efficient use of shareholder equity.
  • Return on Assets (ROA) is 11.55% (TTM), indicating highly efficient use of 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 appears solid but shows some strain in short-term liquidity, with a moderate level of leverage used to fund growth.
  • The Current Ratio is 1.18, indicating the company can meet its short-term obligations, but the margin is not exceptionally high.
  • The Quick Ratio is 1.01, supporting the assessment of adequate but not robust short-term liquidity.
  • The Debt-to-Asset Ratio is 51.79%, suggesting a moderate level of leverage.
  • The moderate leverage is manageable for a company of Amazon's cash-generating capability and is used to fund growth initiatives.
  • The financial structure is focused on growth and efficiency rather than maintaining excessive cash reserves.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset52.45%51.07%49.22%49.75%51.79%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.051.021.011.051.18