📊 AMZN Key Takeaways
Is Amazon Com Inc. (AMZN) a Good Investment?
Amazon demonstrates impressive scale ($181.5B revenue, 12.4% YoY growth) and strong operational margins (13.1%), but concerning fundamentals undermine confidence: negative free cash flow of -$2.5B despite massive $148.5B operating cash flow, extremely thin 3.0% gross margins, and tight liquidity ratios (1.18x current, 1.01x quick). The reported 50% net margin appears inconsistent with gross margins and suggests data anomalies or unsustainable one-time gains.
Amazon's fundamentals show strong core momentum: revenue grew 12.4% while operating income rose to nearly $80.0B, indicating expanding scale and better operating efficiency. The balance sheet remains healthy with low leverage, strong cash generation, and ample liquidity, but growth quality is tempered by very heavy capital spending and a meaningful boost from non-operating income in the latest year.
Amazon Com Inc. Key Strengths (AMZN)
- Massive revenue scale of $181.5B with solid 12.4% YoY growth demonstrates market dominance and expansion
- Strong operating income of $23.9B with 13.1% operating margin shows operational efficiency
- Exceptional leverage position with 0.28x debt/equity ratio and 37.0x interest coverage provides financial flexibility
- Robust $101.8B cash position provides substantial liquidity buffer
- 20.5% ROE demonstrates strong returns on shareholder capital
- Double-digit revenue growth with faster net income and EPS growth shows improving operating leverage
- Low debt-to-equity, very high interest coverage, and large cash reserves indicate strong financial resilience
- High operating cash flow supports continued investment in infrastructure, logistics, and cloud capacity
AMZN Stock Risks: Amazon Com Inc. Investment Risks
- Negative free cash flow of -$2.5B despite $148.5B operating cash flow indicates capital intensity concerns and sustainability questions about current investment levels
- Critically thin gross margin of 3.0% creates severe vulnerability to cost inflation, supply chain disruptions, or competitive pricing pressure
- Below-healthy liquidity ratios (Current 1.18x, Quick 1.01x) provide limited cushion for operational disruptions
- Data anomaly: 50% net margin inconsistent with 3% gross margin suggests non-operating gains, one-time items, or reporting irregularities masking true operating performance
- Heavy capital expenditure of $151B annually creates ongoing cash demands and limits financial flexibility
- Free cash flow is thin because capital expenditures are consuming most operating cash flow
- Latest net income appears partly supported by unusually large non-operating income, which may reduce earnings quality
- Liquidity is adequate but not especially conservative, with current and quick ratios close to 1x
Key Metrics to Watch
- Free cash flow trajectory and path to positive generation; sustainability of $151B annual CapEx
- Gross margin trend and ability to maintain pricing amid cost pressures
- Operating cash flow stability relative to capital requirements and reinvestment efficiency
- Free cash flow conversion after capital expenditures
- Operating margin and operating cash flow growth relative to revenue growth
Amazon Com Inc. (AMZN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Amazon Com Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AMZN Profit Margin, ROE & Profitability Analysis
AMZN vs Consumer Sector: How Amazon Com Inc. Compares
How Amazon Com Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Amazon Com Inc. Stock Overvalued? AMZN Valuation Analysis 2026
Based on fundamental analysis, Amazon Com Inc. appears fundamentally strong relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Amazon Com Inc. Balance Sheet: AMZN Debt, Cash & Liquidity
AMZN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Amazon Com Inc.'s revenue has grown significantly by 53% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.90 reflects profitable operations.
AMZN Revenue Growth, EPS Growth & YoY Performance
AMZN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $155.7B | $17.1B | $1.59 |
| Q3 2025 | $158.9B | $15.3B | $1.43 |
| Q2 2025 | $148.0B | $13.5B | $1.26 |
| Q1 2025 | $143.3B | $10.4B | $0.98 |
| Q3 2024 | $143.1B | $9.9B | $0.94 |
| Q2 2024 | $134.4B | $6.8B | $0.65 |
| Q1 2024 | $127.4B | $3.2B | $0.31 |
| Q3 2023 | $127.1B | $2.9B | $0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Amazon Com Inc. Dividends, Buybacks & Capital Allocation
AMZN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Amazon Com Inc. (CIK: 0001018724)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 3, 2026 | 4 | xslF345X06/wk-form4_1780518424.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779835625.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779835185.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779834787.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779834363.xml | View → |
❓ Frequently Asked Questions about AMZN
What is the AI rating for AMZN?
Amazon Com Inc. (AMZN) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AMZN's key strengths?
Claude: Massive revenue scale of $181.5B with solid 12.4% YoY growth demonstrates market dominance and expansion. Strong operating income of $23.9B with 13.1% operating margin shows operational efficiency. ChatGPT: Double-digit revenue growth with faster net income and EPS growth shows improving operating leverage. Low debt-to-equity, very high interest coverage, and large cash reserves indicate strong financial resilience.
What are the risks of investing in AMZN?
Claude: Negative free cash flow of -$2.5B despite $148.5B operating cash flow indicates capital intensity concerns and sustainability questions about current investment levels. Critically thin gross margin of 3.0% creates severe vulnerability to cost inflation, supply chain disruptions, or competitive pricing pressure. ChatGPT: Free cash flow is thin because capital expenditures are consuming most operating cash flow. Latest net income appears partly supported by unusually large non-operating income, which may reduce earnings quality.
What is AMZN's revenue and growth?
Amazon Com Inc. reported revenue of $181.5B.
Does AMZN pay dividends?
Amazon Com Inc. does not currently pay dividends.
Where can I find AMZN SEC filings?
Official SEC filings for Amazon Com Inc. (CIK: 0001018724) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AMZN's EPS?
Amazon Com Inc. has a diluted EPS of $2.78.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AMZN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Amazon Com Inc. has a A grade with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AMZN stock overvalued or undervalued?
Valuation metrics for AMZN: ROE of 20.5% (sector avg: 18%), net margin of 50.0% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
What is AMZN's AI grade for 2026?
Our dual AI analysis gives Amazon Com Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AMZN's free cash flow?
Amazon Com Inc.'s operating cash flow is $148.5B, with capital expenditures of $151.0B. FCF margin is -1.4%.
How does AMZN compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 50.0% (avg: 8%), ROE 20.5% (avg: 18%), current ratio 1.18 (avg: 1.5).