Amazon.Com Inc
AMZN
$209.77
-0.38%
Amazon.Com Inc is the world's leading online retailer and marketplace, operating in the Specialty Retail industry. It is a dominant force defined by its vast e-commerce ecosystem, bolstered by the high-margin Amazon Web Services cloud platform and a rapidly growing advertising business.…
AMZN
Amazon.Com Inc
$209.77
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Investment Opinion: Should I buy AMZN Today?
Based on a synthesis of the strong fundamentals, reasonable forward valuation, and positive analyst sentiment against the backdrop of recent price weakness and macro risks, the objective assessment points to a 'Buy' rating for long-term investors. The stock is trading near the lower end of its 52-week range, offering a more attractive entry point. The forward P/E of 22.2 and PEG ratio of 1.1 suggest the growth is reasonably priced. This rating is based on the company's durable competitive advantages and financial health, not a guarantee of short-term performance.
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AMZN 12-Month Price Forecast
The analysis leans neutral with a medium-term bullish bias. The strong underlying business and attractive forward valuation are compelling, but near-term headwinds from market volatility and macro uncertainty temper the outlook, favoring a patient investment approach.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Amazon.Com Inc's 12-month outlook, with a consensus price target around $272.70 and implied upside of +30.0% versus the current price.
Average Target
$272.70
27 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
27
covering this stock
Price Range
$168 - $273
Analyst target range
Wall Street analyst consensus is positive, with recent actions from firms like JP Morgan, Citigroup, and TD Cowen reiterating Buy or Overweight ratings. The data indicates coverage from 27 analysts, with an average estimated EPS of $16.93 for the upcoming period and average estimated revenue of $1.25 trillion. Specific consensus target price data was not available in the provided inputs.
Bulls vs Bears: AMZN Investment Factors
Amazon presents a classic growth-at-a-reasonable-price dilemma. Its core business is firing on all cylinders with strong revenue growth and profitability, supported by high-margin segments. However, the stock's recent underperformance and elevated trailing valuation reflect market concerns about volatility and macroeconomic headwinds.
Bullish
- Strong Revenue Growth: Q4 2025 revenue grew 13.6% YoY to $213.4B, demonstrating robust demand.
- High-Margin Segments Thriving: AWS and advertising businesses provide high-margin, diversified growth beyond retail.
- Solid Profitability Metrics: Net margin of 9.9% and ROE of 18.9% show efficient capital use.
- Healthy Financial Position: Conservative D/E of 0.37 and positive free cash flow of $7.7B.
Bearish
- Elevated Valuation: Trailing P/E of 31.7 is high, despite a more reasonable forward P/E of 22.2.
- Recent Price Weakness: Stock down 6.4% over 6 months, underperforming the S&P 500.
- High Market Volatility: Beta of 1.42 indicates stock is 42% more volatile than the market.
- Geopolitical & Macro Risks: News highlights risk-off sentiment and oil price shocks impacting growth stocks.
AMZN Technical Analysis
Overall Assessment: The stock has exhibited significant volatility over the past six months, with a clear downtrend from a peak near $254 in early November 2025 to a low near $199 in mid-February 2026. The 6-month price change is -6.36%, underperforming the S&P 500's -2.82% change over the same period. Short-term Performance: Over the last month, the stock declined by 0.82%, which was notably better than the S&P 500's 5.25% drop, resulting in a positive relative strength of 4.43. The 3-month performance shows a sharper decline of 9.77%, again underperforming the broader market's 4.63% fall. Current Position: The current price of $208.27 sits near the lower end of its 52-week range of $161.38 to $258.6, representing approximately 21% below the high. No RSI data was provided for a current momentum assessment.
Beta
1.42
1.42x market volatility
Max Drawdown
-21.9%
Largest decline past year
52-Week Range
$161-$259
Price range past year
Annual Return
+7.0%
Cumulative gain past year
| Period | AMZN Return | S&P 500 |
|---|---|---|
| 1m | +0.5% | -3.6% |
| 3m | -7.4% | -4.0% |
| 6m | -4.4% | -2.0% |
| 1y | +7.0% | +16.2% |
| ytd | -7.4% | -3.8% |
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AMZN Fundamental Analysis
Revenue & Profitability: Revenue for Q4 2025 was $213.4 billion, showing strong year-over-year growth of 13.63%. Net income for the quarter was $21.2 billion, with a net margin of 9.93%, indicating robust profitability. The quarterly operating margin was 11.71%, supported by a gross margin of 48.47%. Financial Health: The company maintains a moderate debt-to-equity ratio of 0.37, suggesting a conservative capital structure. Free cash flow over the trailing twelve months is positive at $7.7 billion, and the current ratio is a healthy 1.05, indicating sufficient liquidity to cover short-term obligations. Operational Efficiency: Return on Equity (ROE) is strong at 18.89%, reflecting efficient use of shareholder capital. Return on Assets (ROA) is 6.93%, demonstrating solid asset utilization. The company's beta of 1.42 indicates higher volatility than the overall market.
Quarterly Revenue
$213.4B
2025-12
Revenue YoY Growth
+0.13%
YoY Comparison
Gross Margin
+0.48%
Latest Quarter
Free Cash Flow
$7.7B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is AMZN Overvalued?
Valuation Level: With a positive net income, the primary valuation metric is the trailing P/E ratio, which stands at 31.67. The forward P/E is lower at 22.18, based on analyst estimates. The PEG ratio of 1.10 suggests the stock is fairly valued relative to its expected earnings growth rate. Peer Comparison: Industry average valuation data was not provided in the inputs, so a direct peer comparison cannot be made. Other relevant multiples include a Price/Sales ratio of 3.43 and an EV/EBITDA of 15.28.
PE
31.7x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range -133x~772x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.3x
Enterprise Value Multiple
Investment Risk Disclosure
Amazon's primary risks stem from its market sensitivity and competitive landscape. Financially, its high beta of 1.42 makes it susceptible to broader market downturns and shifts in risk sentiment, as evidenced by recent underperformance versus the S&P 500. The company's significant international exposure (22% of revenue) subjects it to currency fluctuations and geopolitical tensions, which recent news indicates are a key driver of market rotations away from growth stocks.
Operational risks include intense competition across all its segments—from retail rivals and cloud providers to digital advertising platforms. While its debt level is moderate (D/E 0.37), its massive scale means any slowdown in consumer spending or enterprise IT budgets could disproportionately impact revenue. Furthermore, its heavy investment in AI and new ventures like Zoox robotaxis, while promising for long-term growth, carries execution risk and may pressure near-term profitability if returns are delayed.
FAQ
Key risks include high stock volatility (beta 1.42), exposure to macroeconomic downturns that could impact consumer and enterprise spending, and intense competition across e-commerce, cloud, and advertising. Geopolitical tensions, as highlighted in recent news, can trigger risk-off rotations that disproportionately affect growth stocks like AMZN. Execution risk in new investments like AI and robotaxis is also a factor.
The 12-month outlook presents a base case target range of $230-$258, implying a 10-24% upside from the current price of $208.27. This is based on the company meeting analyst EPS estimates of ~$16.93 and the valuation multiple stabilizing. The bull case ($258-$285) depends on accelerated growth catalysts, while the bear case ($161-$200) aligns with a retest of the 52-week low if macro risks intensify.
AMZN's valuation is fair to slightly attractive based on forward estimates. The trailing P/E of 31.7 appears high, but the forward P/E of 22.2 aligns better with its growth rate, as indicated by a PEG ratio of 1.1. Compared to its 52-week high of $258.6, the current price of $208.27 represents a ~20% discount, suggesting the market has priced in significant near-term concerns.
For long-term investors, AMZN appears to be a good buy. The company demonstrates strong fundamentals with 13.6% revenue growth, robust profitability (9.9% net margin), and a healthy balance sheet. Trading at a forward P/E of 22.2 and near the lower end of its 52-week range, the valuation is reasonable relative to its growth profile, though short-term volatility is expected.
AMZN is more suitable for long-term investment. Its high beta (1.42) and recent underperformance indicate significant short-term volatility driven by market sentiment. However, its strong competitive moat, diversified high-margin businesses, and consistent execution support a compelling long-term growth story. Investors should be prepared to hold through periods of market turbulence to capture the underlying business growth.