A Business at a Glance
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AMAZON COM INC
AMZN
$2.5T
Mkt Cap
$232.11
-0.66%
AMAZON COM INC (AMZN) has a current P/E ratio of 32.4, compared to its historical median P/E of 52.9. The stock is currently considered Cheap based on its historical valuation range.
AMAZON COM INC (AMZN) has a 5-year average return on invested capital (ROIC) of 20.6%. This indicates strong capital allocation and a potential competitive advantage.
AMAZON COM INC (AMZN) has a market capitalization of $2.5T. It is classified as a mega-cap stock.
AMAZON COM INC (AMZN) does not currently pay a regular dividend.
Based on historical P/E analysis, AMAZON COM INC (AMZN) appears cheap. The current P/E of 32.4 is 39% below its historical median of 52.9. The estimated fair value CAGR (P/E method) is 23.8%.
AMAZON COM INC (AMZN) operates in the Retail-Catalog & Mail-Order Houses industry, within the Consumer Cyclical sector.
AMAZON COM INC (AMZN) reported annual revenue of $716.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Amazon operates three primary segments—North America, International, and Amazon Web Services (AWS)—serving consumers, sellers, developers, enterprises, content creators, advertisers, and employees through a diversified portfolio of retail, technology, and media offerings. The consumer business operates online and physical stores across dozens of product categories, supplemented by subscription services like Amazon Prime, digital delivery, and proprietary devices including Kindle, Fire, Echo, Ring, and Blink; fulfillment occurs through company-operated networks, co-sourced arrangements, and physical locations. The seller services segment operates on a non-inventory model, earning fixed fees, percentage-of-sales commissions, per-unit activity fees, and interest from third-party merchants using Amazon's platforms and fulfillment infrastructure. AWS provides on-demand cloud technology services—compute, storage, database, analytics, artificial intelligence, machine learning, and related offerings—to developers, enterprises, startups, government agencies, and academic institutions, with custom silicon (Trainium and NVIDIA chips) increasingly central to competitive positioning. Amazon also generates revenue from advertising services, content creator programs, and media production, competing across retail, cloud infrastructure, logistics, consumer electronics, and digital advertising against a broad array of global competitors with varying resource advantages. The company emphasizes customer obsession, operational excellence, invention, and long-term thinking, employing approximately 1.576 million full-time and part-time employees globally as of December 2025.
【AI-driven infrastructure scaling】 Management expects AWS to continue strong momentum driven by accelerating enterprise cloud migration and production AI deployment, with substantial capital investments in data centers, power, and custom silicon chips expected to yield compelling operating margins and return on invested capital over time. The company anticipates AWS operating margins will fluctuate based on investment levels, particularly as it monetizes capacity for AI workloads and expands custom chip production (Trainium3 supply expected nearly fully committed by mid-2026, with Trainium4 launching in 2027). In retail, Amazon plans to enhance fulfillment network productivity through inventory optimization and delivery speed improvements while expanding same-day and next-day delivery coverage to additional rural communities and opening over 100 new Whole Foods Market stores. The company is investing significantly in emerging initiatives including satellite internet (Project Kuiper, with commercial launch expected in 2026), agentic AI shopping and advertising tools, and robotics integration in fulfillment operations, positioning multiple new long-term businesses for substantial returns.
| Metric | Target | Period |
|---|---|---|
| Capital Expenditures | approximately $200 billion | 2025 |
| Trainium3 Supply Commitment | nearly all committed | by mid-2026 |
| Satellite Launches | more than 20 launches in 2026, more than 30 in 2027 | 2026-2027 |
| Whole Foods Market Store Openings | more than 100 new stores | over the next few years |
Capital Expenditures (2025): “We expect to invest about $200 billion in capital expenditures across Amazon, but predominantly in AWS, because we have very high demand.”
Trainium3 Supply Commitment (by mid-2026): “We're seeing very strong demand for Trainium3 and expect nearly all of our Trainium3 supply of chips to be committed by mid 2026.”
Satellite Launches (2026-2027): “We've launched 180 satellites, have more than 20 launches planned in 2026, more than 30 in 2027, and expect to launch commercially in 2026.”
Whole Foods Market Store Openings (over the next few years): “We also plan to open more than 100 new Whole Foods Market Stores over the next few years as we work to make grocery shopping easier, faster, and more affordable for customers.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Net service sales | $228.03B | $271.08B | $318.90B | $365.65B | $420.66B | 29% |
Net product sales | $241.79B | $242.90B | $255.89B | $272.31B | $296.27B | 21% |
Online stores | $222.07B | $220.00B | $231.87B | $247.03B | $269.29B | 19% |
Third-party seller services | $103.37B | $117.72B | $140.05B | $156.15B | $172.16B | 12% |
AWS | $62.20B | $80.10B | $90.76B | $107.56B | $128.72B | 9% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 742.8B | 716.9B | 638.0B | 574.8B | 514.0B | 469.8B |
| Net Income | 90.8B | 77.7B | 59.2B | 30.4B | -2.7B | 33.4B |
| EPS | $8.47 | $7.17 | $5.53 | $2.90 | $-0.27 | $0.16 |
| Free Cash Flow | -2.5B | 7.7B | 32.9B | 32.2B | -16.9B | -14.7B |
| ROIC | 16.0% | 21.0% | 27.5% | 15.5% | 8.5% | 30.3% |
| Gross Margin | - | 50.3% | 48.9% | 47.0% | 43.8% | 42.0% |
| Debt/Equity | 0.28 | 0.17 | 0.20 | 0.33 | 0.76 | 0.42 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 85.4B | 80.0B | 68.6B | 36.9B | 12.2B | 24.9B |
| Operating Margin | 11.5% | 11.2% | 10.8% | 6.4% | 2.4% | 5.3% |
| ROE | 20.5% | 22.3% | 24.3% | 17.5% | -1.9% | 28.8% |
| Shares Outstanding | 10,754M | 10,833M | 10,714M | 10,491M | 10,081M | 205,951M |
AMAZON COM INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
AMAZON COM INC trades at 32.4x trailing earnings, compared to its 15-year median P/E of 52.9x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 323.8x vs a median of 49.9x. The company's 5-year average ROIC is 20.6% with a gross margin of 46.4%. At current prices, the estimated annualized return to fair value is -0.3%.
AMAZON COM INC (AMZN) has a net profit margin of 10.8%. This is a healthy margin.
AMAZON COM INC (AMZN) generated $7.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AMAZON COM INC (AMZN) has a debt-to-equity ratio of 0.17. This indicates a conservatively financed balance sheet.
AMAZON COM INC (AMZN) reported earnings per share (EPS) of $7.17 in its most recent fiscal year.
AMAZON COM INC (AMZN) has a return on equity (ROE) of 22.3%. This indicates the company generates strong returns for shareholders.
AMAZON COM INC (AMZN) has a 5-year average gross margin of 46.4%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for AMAZON COM INC (AMZN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AMAZON COM INC (AMZN) has a book value per share of $37.95, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects AWS to continue strong momentum driven by accelerating enterprise cloud migration and production AI deployment, with substantial capital investments in data centers, power, and custom silicon chips expected to yield compelling operating margins and return on invested capital over time. The company anticipates AWS operating margins will fluctuate based on investment levels, particularly as it monetizes capacity for AI workloads and expands custom chip production (Trainium3 supply expected nearly fully committed by mid-2026, with Trainium4 launching in 2027). In retail, Amazon plans to enhance fulfillment network productivity through inventory optimization and delivery speed improvements while expanding same-day and next-day delivery coverage to additional rural communities and opening over 100 new Whole Foods Market stores. The company is investing significantly in emerging initiatives including satellite internet (Project Kuiper, with commercial launch expected in 2026), agentic AI shopping and advertising tools, and robotics integration in fulfillment operations, positioning multiple new long-term businesses for substantial returns.
Based on recent SEC filings and earnings calls, AMAZON COM INC (AMZN) has provided the following forward guidance: Capital Expenditures: approximately $200 billion (2025); Trainium3 Supply Commitment: nearly all committed (by mid-2026); Satellite Launches: more than 20 launches in 2026, more than 30 in 2027 (2026-2027); Whole Foods Market Store Openings: more than 100 new stores (over the next few years).