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Amazon.com Inc (AMZN) Stock

Amazon.com Inc Stock Details, Movements and Public Alerts

Amazon Stock Analysis: The Everything Company's AI Revolution

Discover why Amazon (AMZN) remains the ultimate growth-at-scale investment with AWS cloud dominance, revolutionary AI services, and CEO Andy Jassy's strategic transformation. This comprehensive analysis explores how the everything company leverages Prime's 200M+ members, Alexa's AI evolution, and logistics supremacy to dominate multiple trillion-dollar markets while building the future of artificial intelligence infrastructure.

  • Core Strengths:AWS 31% cloud share, Prime 200M+ members, AI services leadership, logistics moat
  • Main Risks:Retail margin pressure, regulatory scrutiny, heavy capex, unionization efforts
  • Bottom Line:Essential AI infrastructure play with multiple expansion catalysts

Market Cap

$2.37T

52-Week High

$242.52

-4.90% from high

52-Week Low

$151.61

+52.12% from low

Avg Daily Volume

46,633,328

100-day average

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

36.37

Above market average

Forward P/E

34.60

Earnings expected to grow

PEG Ratio

2.88

Potentially overvalued

Price to Book

7.75

EV/EBITDA

17.85

EPS (TTM)

$6.14

Price to Sales

3.65

Beta

1.33

Similar volatility to market

How is AMZN valued relative to its earnings and growth?
Amazon.com Inc trades at a P/E ratio of 36.37, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 34.60 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.88 indicates a premium valuation even accounting for growth.
What is AMZN's risk profile compared to the market?
With a beta of 1.33, Amazon.com Inc is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 7.75 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

10.10%

Operating Margin

11.80%

Return on Equity

25.20%

Return on Assets

7.63%

Revenue Growth (YoY)

8.60%

Earnings Growth (YoY)

62.20%

How profitable and efficient is AMZN's business model?
Amazon.com Inc achieves a profit margin of 10.10%, meaning it retains $10.10 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 11.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 25.20% and ROA at 7.63%, the company generates strong returns on invested capital.
What are AMZN's recent growth trends?
Amazon.com Inc's revenue grew by 8.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 62.20% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against RETAIL-CATALOG & MAIL-ORDER HOUSES industry averages for proper context.

Company Size & Market

Shares Outstanding

10.62B

Book Value/Share

$28.82

Asset Type

Common Stock

What is AMZN's market capitalization and position?
Amazon.com Inc has a market capitalization of $2.37T, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 10.62B shares outstanding, the company's ownership is widely distributed. As a major player in the RETAIL-CATALOG & MAIL-ORDER HOUSES industry, it competes with other firms in this sector.
How does AMZN's price compare to its book value?
Amazon.com Inc's book value per share is $28.82, while the current stock price is $230.63, resulting in a price-to-book (P/B) ratio of 8.00. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$241.74

4.82% upside potential

Analyst Recommendations

Strong Buy

18

Buy

47

Hold

4

Sell

0

Strong Sell

0

How reliable are analyst predictions for AMZN?
69 analysts cover AMZN with 94% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $241.74 implies 4.8% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on AMZN?
Current analyst recommendations:18 Strong Buy, 47 Buy, 4 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 04:25 AM

Earnings Dates

Upcoming Earnings

Q2

Jul 30, 2025

Est. EPS: $1.32

Today

Recent Earnings History

DateQuarterEstimated EPSActual EPSSurprise
May 1, 2025Q1$1.36$1.59+16.9%
Feb 6, 2025Q4$1.48$1.86+25.4%
Oct 31, 2024Q3$1.14$1.43+25.4%
Aug 1, 2024Q2$1.03$1.26+22.3%
Apr 30, 2024Q1$0.82$0.98+19.5%
Feb 1, 2024Q4$0.80$1.00+25.0%
Oct 26, 2023Q3$0.58$0.94+62.1%
Aug 3, 2023Q2$0.35$0.65+85.7%

Technical Indicators

RSI (14-day)

63.87

Neutral

50-Day Moving Average

$216.34

6.61% above MA-50

200-Day Moving Average

$208.98

10.36% above MA-200

MACD Line

4.58

MACD Signal

4.44

MACD Histogram

0.14

Bullish

What does AMZN's RSI value tell investors?
The RSI (Relative Strength Index) for AMZN is currently 63.87, indicating the stock is showing bullish momentum (60-70 range). The stock has positive momentum without being extremely overbought. This zone often occurs during healthy uptrends where buyers remain in control. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret AMZN's MACD and moving average crossovers?
MACD analysis shows the MACD line at 4.58 above the signal line at 4.44, with histogram at 0.14. This bullish crossover suggests upward momentum is building. The 50-day MA ($216.34) is above the 200-day MA ($208.98), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Jul 30, 2025, 12:36 AM

Active Alerts

Alert Condition
Price rises above
Threshold
$242.52
Created
Jul 14, 2025, 08:36 AM
Alert Condition
Earnings Announcement
Threshold
1days
Created
Jul 14, 2025, 05:38 AM
Alert Condition
Volume change
Threshold
10%
Created
Jul 14, 2025, 04:33 AM
Alert Condition
Earnings Announcement
Threshold
1days
Created
Jun 16, 2025, 05:45 PM
Alert Condition
MA Breakout (Bearish)
Threshold
200days
Created
Jun 16, 2025, 05:45 PM
Alert Condition
Volume change
Threshold
20%
Created
Jun 16, 2025, 05:45 PM
Alert Condition
Price falls below
Threshold
$200.00
Created
Jun 16, 2025, 05:45 PM
Alert Condition
Price falls below
Threshold
$200.00
Created
Jun 4, 2025, 10:14 AM
Alert Condition
Death Cross
Threshold
N/A
Created
May 17, 2025, 02:25 PM
Alert Condition
Remind me in
Threshold
200days
Created
Mar 24, 2025, 11:34 AM
Alert Condition
Reaches new 52-week low
Threshold
N/A
Created
Feb 27, 2025, 10:26 AM
Alert Condition
Reaches new 52-week high
Threshold
N/A
Created
Feb 27, 2025, 10:25 AM

Amazon (AMZN) Stock Analysis 2025: Complete AWS & AI Investment Guide

Discover why Amazon (AMZN) remains the ultimate growth-at-scale investment with AWS cloud dominance, revolutionary AI services, and CEO Andy Jassy's strategic transformation. This comprehensive analysis explores how the everything company leverages Prime's 200M+ members, Alexa's AI evolution, and logistics supremacy to dominate multiple trillion-dollar markets while building the future of artificial intelligence infrastructure.

The AI Cloud Computing Colossus

When Andy Jassy took the CEO reins from Jeff Bezos in 2021, skeptics wondered if the AWS architect could manage the sprawling empire of retail, cloud, devices, and entertainment. Three years later, Jassy has not just managed but transformed Amazon into the essential infrastructure provider for the AI age. AWS, which Jassy built from scratch, now generates $100 billion annually while pioneering AI services like Bedrock, SageMaker, and Q that make artificial intelligence accessible to every business. This isn't just cloud computing anymore – it's the foundational layer upon which the entire AI economy is being built.

The brilliance of Amazon's position becomes clear when examining how deeply embedded they've become in both consumer and enterprise life. Prime's 200 million members don't just shop – they stream Prime Video, use Alexa devices, get Whole Foods deliveries, and increasingly rely on Amazon Pharmacy and Amazon Clinic. Meanwhile, AWS powers 31% of the internet's infrastructure, from Netflix to NASA, with switching costs so high that customer churn barely exists. This dual-sided dominance – consumers and enterprises – creates competitive advantages that compound over time.

But CEO Andy Jassy's masterstroke may be positioning Amazon at the intersection of commerce and AI. While competitors focus on chatbots, Amazon integrates AI into everything: Alexa's new Large Language Model capabilities, Just Walk Out technology in Amazon Fresh stores, AI-powered robotics in fulfillment centers, and Bedrock's enterprise AI platform on AWS. Even the Rivian partnership and Zoox autonomous vehicle investment position Amazon to dominate AI-powered logistics. When Jassy speaks of 'Day 1' mentality, he means Amazon is just beginning to leverage AI across its ecosystem.

Financial Performance Defying Gravity

Amazon's financial transformation under Andy Jassy has been remarkable. Revenue reached $575 billion in 2023, but the real story is margin expansion. Operating income exploded to $37 billion as Jassy's efficiency initiatives took hold, proving Amazon can be both a growth machine and profit generator. AWS alone generated $23 billion in operating income with 30% margins, funding investments across the entire ecosystem. This isn't the Amazon of old that prioritized growth over profits – it's a disciplined operator extracting value from dominant market positions.

The segment breakdown reveals multiple businesses each worth hundreds of billions independently. AWS ($100 billion revenue) leads in cloud infrastructure with AI services growing 3x year-over-year. The retail business ($450 billion) increasingly shifts to higher-margin services like advertising ($47 billion) and Prime memberships ($35 billion). Even nascent businesses show massive potential: Amazon Pharmacy grows 40% annually, Buy with Prime extends logistics to third parties, and Prime Video's ad tier launched to immediate success. CEO Andy Jassy has unleashed profit centers hidden within Amazon's sprawl.

Free cash flow tells the ultimate story of Amazon's maturation. After years of heavy investment, FCF reached $48 billion in the trailing twelve months, funding both aggressive AI infrastructure buildout and shareholder returns. The balance sheet remains fortress-like with $87 billion in cash and marketable securities. This financial strength allows Amazon to invest countercyclically – while competitors pull back on AI spending due to costs, Amazon accelerates, knowing AWS will capture the returns. Jassy's background running AWS taught him that infrastructure investments compound over decades.

Valuation: Hidden Value in Plain Sight

At a P/E ratio of 45, Amazon appears expensive versus traditional retail or even some tech peers. But this analysis fundamentally misunderstands what Amazon has become under Andy Jassy's leadership. Strip away the retail business entirely, and AWS alone justifies a trillion-dollar valuation at cloud infrastructure multiples. Add back Prime's subscription revenue, the advertising business growing 25% annually, and emerging healthcare initiatives, and today's $1.8 trillion market cap looks conservative for patient investors.

Consider the sum-of-parts valuation. AWS at 12x revenue (below pure-play cloud valuations) equals $1.2 trillion. The advertising business at Meta/Google multiples approaches $300 billion. Prime subscriptions at Netflix valuations reach $250 billion. The core retail business, logistics network, and emerging ventures like healthcare, devices (Alexa, Kindle, Fire TV), and autonomous vehicles provide hundreds of billions in additional value. CEO Andy Jassy effectively runs multiple Fortune 100 companies under one roof, each with sustained competitive advantages.

More importantly, Amazon's AI investments are creating new S-curves of growth. Bedrock on AWS democratizes AI deployment, potentially doubling cloud TAM. Alexa's LLM upgrade could finally monetize the 500 million devices in homes. Project Kuiper's satellite internet constellation opens new markets. Even MGM Studios positions Amazon to win in AI-generated content. Wall Street models none of these appropriately, creating opportunity for investors who understand Jassy's vision of AI-everywhere infrastructure.

Growth Catalysts for 2025 and Beyond

1. AWS AI Services Explosion

While everyone focuses on consumer AI applications, the real money flows to infrastructure providers. AWS Bedrock, launched under Andy Jassy's direct oversight, lets enterprises deploy AI models from Anthropic, Stability AI, and Amazon's own Titan models without managing infrastructure. Early adopters like BMW, Intuit, and Nasdaq show this isn't experimental – it's production-ready AI that generates immediate ROI. With Bedrock usage growing 3x quarter-over-quarter and enterprises just beginning their AI journeys, AWS stands to capture the lion's share of AI infrastructure spending.

The beauty of AWS's position is optionality. Unlike companies betting everything on proprietary models, Amazon provides choice. SageMaker enables custom model development, Bedrock offers pre-trained options, and Q provides conversational AI for business applications. This Switzerland approach means AWS wins regardless of which AI models dominate. CEO Andy Jassy learned from the cloud wars that developers want options, not lock-in. As AI spending shifts from experimentation to production deployment, AWS's 31% cloud market share translates directly to AI infrastructure dominance.

2. Healthcare Disruption at Scale

Amazon's healthcare ambitions, dismissed after Haven's failure, are quietly succeeding through multiple vectors. Amazon Pharmacy now fills millions of prescriptions with 40% growth, leveraging Prime's free delivery to disrupt traditional pharmacies. Amazon Clinic provides virtual care nationwide, while One Medical's 815,000 members get concierge primary care. The integration of these services with Alexa health features and AWS's healthcare cloud creates an ecosystem traditional providers can't match. When Andy Jassy talks about 'reinventing healthcare,' he means it literally.

The $4 trillion U.S. healthcare market represents Amazon's largest expansion opportunity. Unlike retail disruption which took decades, healthcare's digital transformation accelerates post-COVID. Amazon's advantages – logistics for prescription delivery, AI for diagnostics, cloud for health records – compound in healthcare. Even a 5% market share would add $200 billion in high-margin revenue. With CVS and Walgreens closing stores while Amazon expands, the pharmacy disruption alone could double Amazon's valuation. CEO Andy Jassy's patience with long-term bets positions Amazon to win healthcare's digital transformation.

3. Advertising: The Hidden Profit Engine

Amazon's advertising business, generating $47 billion annually, has quietly become the third-largest digital ad platform behind only Google and Meta. But unlike search or social ads, Amazon's sponsored products appear when consumers are ready to buy, delivering unmatched ROI for advertisers. The new Prime Video ad tier immediately reached 100 million viewers, creating a premium video advertising inventory that commands top dollar. As Andy Jassy noted, advertising could eventually rival AWS in profitability while requiring minimal capital investment.

The advertising flywheel accelerates with AI. Machine learning optimizes ad placement, while Alexa shopping creates new voice-commerce opportunities. Even AWS contributes through clean room technology that enables privacy-safe ad targeting. With retail media growing 20%+ industry-wide and Amazon controlling the largest e-commerce platform, advertising revenue could reach $100 billion by 2027. This high-margin revenue stream, built on existing infrastructure, drops straight to the bottom line. Wall Street still undervalues this hidden gem within Amazon's empire.

Risks That Challenge the Everything Store

1. Regulatory and Antitrust Pressures

  • FTC lawsuit seeks to break up Amazon's retail dominance
  • EU regulations threaten marketplace practices
  • AWS market power draws increasing scrutiny
  • Labor organization efforts gaining momentum nationwide

2. Margin Compression Threats

  • Retail competition from Walmart, Target intensifying
  • Rising fulfillment costs despite automation
  • AWS pricing pressure as cloud market matures
  • Heavy AI infrastructure investments impact near-term margins

3. Execution and Competition Risks

  • Microsoft Azure gaining cloud market share with AI focus
  • Google Cloud growing faster from smaller base
  • Retail media competition from Walmart, Instacart
  • International expansion challenges in India, Southeast Asia

Who Should Buy Amazon Stock?

Perfect For

  • Long-term growth investors seeking AI exposure
  • Technology portfolio cornerstone positions
  • Investors wanting diversified revenue streams
  • Those believing in commerce and cloud convergence

Less Suitable For

  • Dividend-seeking income investors
  • Deep value investors wanting low multiples
  • Short-term traders without patience
  • Those concerned about regulatory risks

Strategic Approach to Building a Position

Amazon's volatility creates opportunities for strategic position building. The stock regularly experiences 20-30% drawdowns during market corrections or earnings disappointments, yet the long-term trajectory remains upward. Rather than trying to time the perfect entry, consider dollar-cost averaging into weakness. Key support levels align with the 200-day moving average, historically providing attractive entry points for patient investors. Given Amazon's multiple business lines, any single disappointment rarely impacts the long-term thesis.

Position sizing matters given Amazon's premium valuation. As a core holding, 5-10% portfolio allocation provides meaningful exposure without excessive concentration risk. For younger investors with longer time horizons, higher allocations may be appropriate given Amazon's role in multiple secular trends. Consider pairing Amazon with other cloud providers (Microsoft) or e-commerce plays (Shopify) for diversified exposure to digital transformation themes. CEO Andy Jassy's track record at AWS suggests patient shareholders will be rewarded.

Options strategies can enhance returns for sophisticated investors. Selling cash-secured puts during market weakness generates income while potentially acquiring shares at discounts. With implied volatility often elevated around earnings, selling puts 10-15% out-of-the-money can yield attractive premiums. Alternatively, bull call spreads provide leveraged upside exposure with defined risk. These strategies require careful management but align well with Amazon's volatile yet upward-trending price action under Andy Jassy's leadership.

The Verdict: Betting on the Everything Company's AI Future

Amazon under Andy Jassy represents a transformed investment proposition. No longer just an e-commerce giant, it's the essential infrastructure provider for both digital commerce and artificial intelligence. AWS's dominance in cloud computing naturally extends to AI services through Bedrock and SageMaker. Prime's 200 million members create a captive audience for new services from healthcare to entertainment. The advertising business generates tech-like margins from retail operations. Even Alexa, Kindle, and emerging bets like Rivian and Kuiper provide free optionality on transformative technologies.

The investment case ultimately rests on trusting Andy Jassy's vision and execution. As the architect of AWS, Jassy understands how to build platforms that become essential infrastructure. His focus on efficiency has unlocked profitability while maintaining growth investments. The cultural transformation from growth-at-any-cost to disciplined capital allocation positions Amazon for sustainable outperformance. While regulatory risks are real and competition intensifying, betting against Amazon's ability to adapt and dominate new markets has proven costly for skeptics.

Conclusion

Amazon remains a compelling growth-at-scale investment for long-term portfolios. CEO Andy Jassy's strategic focus on AI infrastructure (AWS Bedrock), healthcare disruption (Amazon Pharmacy, One Medical), and advertising expansion creates multiple paths to double the current valuation. While the P/E of 45 appears rich, the sum-of-parts valuation and secular growth trends justify premium multiples. Patient investors who understand Amazon's transformation from retailer to AI infrastructure provider will likely see substantial returns.

2025 Price Target
$220-250 (+20-35%)
Risk Level
Medium-High (tech volatility)
Recommendation
Buy on any weakness

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