1. Executive Summary
- Company: Amazon.com Inc.
- Ticker: AMZN
- Industry: E-commerce, Cloud Computing, Digital Advertising
- Exchange: NASDAQ
- Investment Recommendation: Buy — Strong earnings growth, diversified revenue streams, and recent geopolitical tailwinds support a bullish long-term outlook.
2. Company Overview
- Business Model: Amazon generates revenue through online retail, Amazon Web Services (AWS), digital ads, Prime subscriptions, logistics, and healthcare.
- Industry Position: Dominant in global e-commerce and cloud infrastructure; expanding presence in AI and healthcare.
- Core Services: Amazon.com, AWS, Prime Video, Amazon Advertising, Amazon Logistics.
- Leadership: CEO Andy Jassy (since 2021).
3. Financial Analysis
- FY2024 Performance:
- Revenue: $637.9B (+10.99% YoY)
- Net Income: $59.2B (+94.7% YoY)
- Q1 2025 Highlights:
- Revenue: $155.7B (+9% YoY)
- Profitability:
- Operating Margin: ~7.5% (driven by AWS and Ads)
- Net Margin: ~9.3%
- EPS: ~$5.75 (TTM, FY2024)
- Balance Sheet:
- Total Assets: $624.8B
- Total Liabilities: $155.6B
- Current Ratio: ~1.1
- Cash Flow:
- Operating Cash Flow: >$100B (driven by AWS and Ads)
4. Stock Performance
- Current Price: $213.43
- 52-Week Range: $120.00 – $242.52
- YTD Performance: +18.5%
- Recent Momentum: Gained 8.1% on May 12, 2025, following U.S.–China tariff relief news.
5. Valuation Analysis
- P/E Ratio: ~33.8x (reasonable for a growth tech stock)
- P/S Ratio: ~2.1x
- P/B Ratio: ~8.5x
- Analyst Price Target:
- Average: $247.11
- Implied Upside: ~15.8%
- Analyst Consensus: 42 of 44 analysts rate it a Buy
6. Industry & Market Analysis
- Trends: While e-commerce growth slows, cloud, AI, and advertising are strong drivers.
- Market Share: ~40% of U.S. e-commerce market; AWS maintains a leading cloud share.
- Macro Factors: U.S.–China trade easing boosts supply chain stability and margin outlook.
7. Risk Analysis
- Market Risk: E-commerce saturation and rising competition.
- Financial Risk: Slower AWS growth could impact profitability.
- Regulatory Risk: Antitrust scrutiny and data privacy regulation.
- Geopolitical Risk: International logistics and trade policy disruptions.
8. Growth Catalysts
- AI & ML: AWS expanding generative AI offerings and enterprise cloud services.
- Advertising: Grew to ~$56B in 2024, ~8.2% of total revenue.
- Prime Ecosystem: Stable growth in Prime subscriptions fuels cross-sell opportunities.
- Healthcare & Robotics: New growth areas with long-term upside.
9. Analyst Sentiment
- Consensus: Strong Buy
- Target Price: $247.11
- Outlook: Strong cash flows and diversified businesses support long-term bullish sentiment.
10. Conclusion
Amazon continues to dominate across multiple high-growth verticals. With strong earnings momentum, stable cash generation, and new market expansion (AI, healthcare), the current price offers a compelling long-term Buy opportunity. Near-term volatility may persist, but fundamentals remain strong.
11. Appendix
- Recent Price History:
| Date | Closing Price |
|---|---|
| 2025-05-13 | $213.43 |
| 2025-05-12 | $208.64 |
| 2025-05-09 | $193.00 |
| 2025-05-08 | $190.00 |
| 2025-05-07 | $188.00 |