Amazon.com, Inc.AMZN
NMS • Consumer Cyclical
$259.92
P/E
20.63
PEG
0.27
FCF Yield
0.3%
Rev Growth YoY
+16.6% YoY
Gross Margin
51.8%
Health Score
7/10
D/E Ratio
0.27
Confidence
MEDIUM
Business Snapshot
Amazon.com operates across two primary engines: an online retail and marketplace business that sells goods directly and takes commissions from third-party sellers, and Amazon Web Services, its cloud computing division that rents computing power and storage to enterprises. It competes in global e-commerce against Walmart and others, and in cloud infrastructure against Microsoft and Google, holding a dominant position in both arenas. As a large-cap company with a $2.80T market capitalisation, it operates at extraordinary scale, with quarterly revenue reaching $213.39B in the December 2025 quarter. Its defining characteristic is the combination of a low-margin retail operation that generates enormous transaction volume with a high-margin cloud business that subsidises the whole — a structural advantage that few competitors can replicate. The company also carries a $7.70B free cash flow figure, reflecting its capital-intensive fulfilment and logistics network.
Financial Health
Gross margin stands at 51.8%, up from 48.5% in the prior year, a meaningful improvement that suggests better cost leverage or a favourable mix shift toward higher-margin services. Net margin (TTM) is 17.4%, which is healthy for a company of this scale...
Risk Assessment
- REVENUE DECELERATION — QoQ revenue growth of -14.9% is sharply below the YoY growth of 16.6%, indicating a significant sequential contraction in the most recent quarter.
- EARNINGS QUALITY — Only 2 of the last 4 quarters beat estimates, a 50% hit rate that raises questions about guidance credibility.
- FCF / CASH BURN — Free cash flow yield of 0.3% is below the 1% threshold, meaning the $7.70B in FCF is very small relative to the $2.80T market cap.
- VALUATION DIVERGENCE — The Python DCF estimate of $15.02 diverges from the current price of $259.92 by more than 25%, creating substantial uncertainty about intrinsic value.
- INSIDER — Insiders recorded 0 buys and 3 sells over the last 90 days, a net selling signal that may indicate reduced confidence at current levels.
- 52-WEEK POSITION — The current price of $259.92 is below the midpoint of the 52-week range ($287.2 high / $196.0 low = midpoint $241.6), though it remains above that midpoint, so this is not a flag.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 51.8%, up from 48.5% in the prior year, a meaningful improvement that suggests better cost leverage or a favourable mix shift toward higher-margin services. Net margin (TTM) is 17.4%, which is healthy for a company of this scale. The balance sheet is conservative: debt/equity of 0.27x is well below the 1.5x threshold that would signal stress, and the current ratio of 1.18x indicates short-term obligations are covered with a modest cushion. Free cash flow is positive at $7.70B, though the FCF yield of 0.3% is very low relative to the $2.80T market cap, meaning the cash generated is small in proportion to the company's valuation. Return on equity of 30.6% demonstrates efficient use of shareholder capital. Overall, the financial position is solid — the company generates cash, carries little debt, and has room to reinvest, though the low FCF yield means investors are paying a high price for each dollar of cash flow.
- REVENUE DECELERATION — QoQ revenue growth of -14.9% is sharply below the YoY growth of 16.6%, indicating a significant sequential contraction in the most recent quarter. - EARNINGS QUALITY — Only 2 of the last 4 quarters beat estimates, a 50% hit rate that raises questions about guidance credibility. - FCF / CASH BURN — Free cash flow yield of 0.3% is below the 1% threshold, meaning the $7.70B in FCF is very small relative to the $2.80T market cap. - VALUATION DIVERGENCE — The Python DCF estimate of $15.02 diverges from the current price of $259.92 by more than 25%, creating substantial uncertainty about intrinsic value. - INSIDER — Insiders recorded 0 buys and 3 sells over the last 90 days, a net selling signal that may indicate reduced confidence at current levels. - 52-WEEK POSITION — The current price of $259.92 is below the midpoint of the 52-week range ($287.2 high / $196.0 low = midpoint $241.6), though it remains above that midpoint, so this is not a flag. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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