AMZNBULLISH

Gross Margin

51.8%

Higher than 74% of Consumer Cyclical sector peers

Updated 22h ago

Sector Performance

74th percentile

AMZN

51.8%

Sector Median

36.1%

Sector Avg

30.8%

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Deep Analysis

Amazon's gross margin of 51.8% means that for every dollar of revenue, the company keeps about 51.8 cents after accounting for the direct costs of producing its goods and services.

This figure sits well above the sector median of 32.0%, placing Amazon in the 76th percentile among Consumer Cyclical peers. The metric has been perfectly stable over the last eight quarters, with year-over-year and quarter-over-quarter changes both at +0.0%. A high gross margin combined with absolute stability suggests low near-term operational risk but also limited upside surprise from cost improvements. This consistent performance supports the overall NEUTRAL verdict, as the metric offers neither a clear bullish catalyst nor a material concern.

Frequently Asked Questions

What does the Gross Margin tell investors about AMZN?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AMZN's Gross Margin compare to its sector?

AMZN's Gross Margin of 51.8% compares to a Consumer Cyclical sector median of 36.1%, placing it in the 74th percentile.

Who are AMZN's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: XPEV (21.3%), TSLA (21.1%), BBY (20.9%), BWA (19.2%), APTV (18.1%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.