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 Rating7.3/10
Generated at:2026-04-17 17:41:32
Analysis based on 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Stock price data as of 2026-04-17 close. Data completeness is good with comprehensive financial statements for fundamental analysis.
Overview

Amazon.com, Inc. (AMZN) demonstrates strong fundamental performance with robust revenue growth, exceptional and accelerating earnings growth, expanding margins, and high returns on capital. The company maintains a solid financial position with moderate leverage and adequate liquidity, supporting its dominant competitive moats in e-commerce and cloud computing.

Valuation
6/10
Profitability
9/10
Financial health
7/10
Operation Advice
  • Based on fundamental analysis, a Buy recommendation is advised with a 12-month target price of $275.00, representing approximately 9.8% upside from the current price of $250.56.
  • Investors should consider accumulating positions, acknowledging the stock appears fairly valued to slightly undervalued relative to its growth trajectory.

Valuation

P/E TTM
28.83
P/E LYR
43.62
P/B MRQ
5.45
P/S TTM
--
AI Analysis
  • Amazon's valuation carries a premium but appears justifiable given its high growth rate and market dominance. The stock is assessed as fairly valued to slightly undervalued at the current price, with a target price of $275.00 based on a blended valuation approach emphasizing P/E multiples.
  • Current stock price is $250.56 as of 2026-04-17 close.
  • P/E (TTM) is 28.83, a premium but justifiable multiple for a mega-cap growth company.
  • Forward P/E (Dynamic) is 43.62, indicating market expectations for near-term earnings growth acceleration.
  • P/B Ratio is 5.45, reflecting valuation of intangible assets and future growth potential.
  • P/S Ratio (TTM) is 3.76, reasonable for a company transitioning to higher profitability.
  • P/E-based target price range is $250.95 to $286.80 using TTM EPS of $7.17 and forward P/E range of 35x-40x.
  • The current price sits at the very bottom of the calculated P/E-based range.
  • A 12-month fundamental target price of $275.00 is reasonable, representing 9.8% upside.
  • The stock appears fairly valued to slightly undervalued at $250.56 relative to its growth profile and profitability expansion.
Valuation trend

Profitability

ROE TTM
22.29%
Net margin
10.83%
Gross margin
50.29%
Total revenue
716.92B
AI Analysis
  • Amazon's profitability shows remarkable and accelerating growth with strong revenue expansion, impressive earnings growth, and significant margin improvement across all key metrics.
  • Full-year 2025 revenue reached $716.92B, representing 12.38% year-over-year growth.
  • Revenue growth has been consistent with double-digit growth in prior quarters.
  • Full-year 2025 net income was $77.67B, a 31.09% year-over-year increase.
  • Net income growth follows extraordinary 94.73% year-over-year growth in 2024.
  • Gross Margin improved to 50.29% in FY2025 from 48.85% in FY2024, highlighting improved product/service mix.
  • Net Margin expanded to 10.83% from 9.29%, demonstrating significant operating leverage and cost discipline.
  • Return on Equity (ROE) is 22.29%, indicating highly efficient use of shareholder capital.
  • Return on Assets (ROA) is 10.77%, showing efficient use of corporate assets to generate profits.
  • The profitability trend indicates a successful transition towards higher-margin businesses like AWS and advertising.
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 maintains a strong and stable financial position with adequate liquidity, moderate leverage, and robust profitability driving overall financial strength.
  • Current Ratio is 1.05, indicating adequate short-term liquidity though relatively tight for the company's scale.
  • Quick Ratio is 0.88, which is typical for Amazon's high-velocity, low-margin retail operations.
  • Debt-to-Asset Ratio is 49.75%, reflecting a moderate and manageable level of leverage.
  • The capital structure supports growth investments while maintaining financial flexibility.
  • Robust and growing profitability is the primary driver of the company's financial strength.
  • High asset turnover inherent in the business model supports the solid financial condition.
  • Efficient working capital management is required given the liquidity ratios.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset54.24%52.45%51.07%49.22%49.75%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.061.051.021.011.05