Amazon
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Amazon.com, Inc. (doing business as Amazon) is an American multinational conglomerate engaged in e-commerce, retail, cloud computing, online advertising, digital streaming, entertainment, and artificial intelligence.
From Wikipedia, CC BY-SA 4.0, revision of 1 Nov 2026.
What stands out
- Sales have grown about 13.2% a year for five years, so each $1 of sales in FY2020 is about $1.86 now.Revenue growth over 5–10 years: +13.2% a year
- Amazon kept about 11 cents of operating profit from each $1 of sales in FY2025.Operating margin (operating income ÷ revenue): 11.2%
- Amazon has earned more on its money than that money costs, in 5 of the last 5 years.Return on invested capital (ROIC); ROE for banks: 26.5% ROIC
Worth digging into
- For every $1 of reported profit over 5 years, about $0.21 turned up as spare cash.Free cash flow (operating cash flow − capex), and FCF ÷ net income: $7.7B
- Price more than 50% above the valuation sheet's middle valuePrice +67% against the sheet's default story, 16 Oct 2026
From filed figures and the weekly screener snapshot, 30 Oct 2026. Observations to check in the tabs below, not advice.
What has the price done?
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Press and drag across the chart to see the change between two points. Source: Yahoo Finance, delayed. Bars are daily and prices are adjusted for splits, not dividends. Past returns don't predict future returns.
Dividends
Full chart
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How does it make money?
What it does
Amazon reports 3 businesses. In FY2025, North America brought in 59%, international brought in 23% and AWS brought in 18% of revenue.
By product, the biggest seller is online stores at 38% of revenue, then third-party seller services at 24%.
By region, United States made up 68%, then Rest of world at 15%.
From Amazon.com, Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2025.
Where the revenue comes from
- North America59%
- International23%
- AWS18%
Shares of revenue, FY2025. Source: Amazon.com, Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2025.
How it makes money
Where Amazon's FY2025 revenue came from, what it cost to earn, and what was left for shareholders.
- Income
- Costs and tax
- Profit
- % = share of revenue
Source: Amazon.com, Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2025 (6 Feb 2026), statement of operations, Note 10. FY2025 is the year to 31 Dec 2025. Figures as reported, in US$ millions in the tooltips and table.
Technical: gross margin was 50.3%, operating margin 11.2% and net margin 10.8%. Operating costs and cost of revenue together took 88.8% of revenue.
Plain: of every dollar of sales, about 50 cents paid for making or delivering what was sold, about 39 cents went on running and growing the business, and about 11 cents ended up as profit for shareholders.
Revenue by product
Revenue by business
Revenue by region
See the numbers
| FY2025 | US$M | % of revenue |
|---|---|---|
| Revenue | 716,924 | 100.0% |
| Cost of revenue | −356,414 | 49.7% |
| Gross profit | 360,510 | 50.3% |
| Fulfillment | −109,074 | 15.2% |
| Technology and infrastructure | −108,521 | 15.1% |
| Sales and marketing | −47,129 | 6.6% |
| General and administrative | −11,172 | 1.6% |
| Other operating expense, net | −4,639 | 0.6% |
| Operating income | 79,975 | 11.2% |
| Other income (expense), net | 17,336 | 2.4% |
| Profit before tax | 97,311 | 13.6% |
| Income tax | −19,087 | 2.7% |
| Equity-method investments, after tax | −554 | 0.1% |
| Net profit to shareholders | 77,670 | 10.8% |
- Gross profit is net sales less cost of sales. Amazon doesn't report the subtotal itself, and puts fulfilment and technology costs below it.
- Other income of US$17,336M is interest income of US$4,381M, less interest expense of US$2,274M, plus other income, net of US$15,229M.
- Amazon's share of losses from equity-method investments was US$554M after tax.
History and context
Amazon.com, Inc. (doing business as Amazon) is an American multinational conglomerate engaged in e-commerce, retail, cloud computing, online advertising, digital streaming, entertainment, and artificial intelligence. Founded in 1994 by Jeff Bezos in Bellevue, Washington, the company started as an online book marketplace that gradually expanded to include virtually all consumer products as well as many other categories, positioned as "The Everything Store".
As of 2026 it was the world's biggest online retailer. Amazon sells books, electronics, pharmaceuticals, car parts, video games, dining products, jewelry, food, music, and sports equipment.
From Wikipedia's article Amazon (company), the lead section as of the revision of 1 Nov 2026, retrieved 1 Nov 2026. Text under CC BY-SA 4.0, pronunciation guides removed. Wikipedia can be edited by anyone; the company's own filings are the primary source.
What it actually sells Soon
A product-by-product guide to Amazon: what each one is, who buys it, and how much it brings in, in plain English and in the company's own terms. We're starting with the companies that are hardest to picture, like Broadcom.
Moat rating
Wide moat
8.8 / 10
ROIC averaged 28.2% over FY2021 to FY2025, 20.9 percentage points above a 7.27% cost of capital, and beat it every year, even in FY2022 when it fell to 10.5%.
Amazon has earned more than its capital costs for five years running, even in its weakest year.
The numbers
10.0 / 10Return on invested capital against cost of capital, general retail
- Average ROIC
- 28.2%
- Average excess return
- +20.9 pp
- Years above the hurdle
- 5 of 5
Spread 10 × 60% + durability 10 × 40% = 10.0
The sources
7.6 / 10Where Amazon's advantage comes from
- 1. Brand and pricing power6 / 10
North America earned US$29.6B of operating income on US$426.3B of sales in 2025, a 6.9% margin.
Amazon's shops win on price and convenience, so the profit on each sale stays thin.
- 2. Barriers to entry7 / 10
Fulfillment cost US$109.1B and technology and infrastructure US$108.5B in 2025.
Few rivals can afford a delivery network and data centres this big, which keeps them from catching up.
- 3. Switching costs7 / 10
Subscription services, led by Prime, brought in US$49.6B. AWS customers build their systems on its services, which makes moving costly.
Prime members have already paid for free delivery, and companies on AWS would have to rebuild to leave.
- 4. Network effects8 / 10
Third-party seller services brought in US$172.2B and advertising US$68.6B: more shoppers attract more sellers, and more sellers bring more choice.
Shoppers come for the choice, sellers come for the shoppers, and both keep the other there.
- 5. Economies of scale10 / 10
Revenue of US$716.9B in 2025. AWS made US$45.6B of operating income, 57% of the total, on 18% of sales.
Amazon spreads the cost of its warehouses and data centres over more orders and customers than almost anyone, and AWS makes most of the profit.
Return on invested capital: Amazon.com, Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2021; Amazon.com, Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2022; Amazon.com, Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2023; Amazon.com, Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2024; Amazon.com, Inc. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2025. Hurdle: Aswath Damodaran, NYU Stern, Cost of capital by sector (US), data as of January 2026. Our choice of industry: most of Amazon's revenue is retail. AWS on its own would sit in a software group with a higher hurdle.
How we worked out ROIC: operating income after tax, divided by the capital invested at the start of the year. Tax is at the year's effective rate, or the 21% US federal rate where a pre-tax loss or a tax credit makes the effective rate meaningless. Invested capital is shareholders' equity plus borrowings, less cash and short-term investments, from the opening balance sheet in the same 10-K; lease liabilities are left out. This follows Damodaran's definition. The ratios are our calculation from the filed figures, not numbers the company reports. Amazon held US$6.8B of commercial paper at 31 Dec 2022 inside "accrued expenses and other" (FY2023 10-K, Note 6), so we added it to borrowings for FY2023.
Lens scores are rasinbun's judgment, reviewed 19 Oct 2026. A wide moat is a reason to dig deeper, not a verdict on the price. For education only. Not financial advice.
How we rate moats ›Is it a good business at a fair price?
What each method implies
Ranges, not targetsThe five questions, and the price
Six checks from the annual reports. A flag marks a reason to dig deeper, not a verdict.
- 1. Is it growing?Within the guide
+13.2% a year
Revenue growth over 5–10 years
Revenue $386.1B in FY2020 to $716.9B in FY2025; +21.0% a year over 10 years. It fell in 0 of the last 5 years.
Sales have grown about 13.2% a year for five years, so each $1 of sales in FY2020 is about $1.86 now.
What to look for Steady growth, not one lucky year.
Source: FY2020 10-K, filed 3 Feb 2021; FY2025 10-K, filed 6 Feb 2026.
- 2. Is it profitable?Within the guide
11.2%
Operating margin (operating income ÷ revenue)
FY2025 operating margin. 5-year average 7.2%, range 2.4% to 11.2%.
Amazon kept about 11 cents of operating profit from each $1 of sales in FY2025.
What to look for Stable or rising. It's cleaner than net income, which one-off items and tax can distort.
Source: FY2025 10-K, filed 6 Feb 2026.
- 3. Is the profit real cash?Reason to dig deeper
$7.7B
Free cash flow (operating cash flow − capex), and FCF ÷ net income
FY2025 free cash flow: operating cash flow $139.5B less capex $131.8B. Over 5 years FCF was 21% of net income.
For every $1 of reported profit over 5 years, about $0.21 turned up as spare cash.
What to look for FCF positive and growing, and close to net income over time.
Source: FY2025 10-K, filed 6 Feb 2026.
- 4. Is it a good business?Within the guide
26.5% ROIC
Return on invested capital (ROIC); ROE for banks
FY2025 ROIC. 5-year average 28.2% against a 7.27% cost of capital, general retail; above it in 5 of 5 years.
Amazon has earned more on its money than that money costs, in 5 of the last 5 years.
What to look for Clearly above the cost of capital (roughly 8–10%). Sustained 15%+ usually means a moat.
Source: Our moat rating, Moat tab; Aswath Damodaran, NYU Stern, January 2026.
- 5. Can it survive a bad year?Within the guide
Net cash $53.7B
Net debt ÷ EBITDA or ÷ FCF, plus interest cover
FY2025 year end: borrowings $69.3B, cash and short-term investments $123.0B. Operating income covers interest 35.2x.
Amazon holds more cash than it owes, so it could pay off its borrowings today.
What to look for Debt payable from about 3 years of FCF or less, interest covered many times.
Source: FY2025 10-K, filed 6 Feb 2026.
- 6. Is the price right?
0.3% FCF yield
FCF yield or EV/EBIT, and price against a cash-flow value
Market cap $2.6T. FCF yield 0.3% on FY2025 free cash flow. EV/EBIT 31.7x on FY2025 operating income. The valuation sheet's default story values it at US$71.99–US$250.74 a share (middle US$149.73); at US$250.00, its 16 Oct 2026 price, the price is +67.0% against the middle.
At this price, each $100 of shares comes with about $0.30 of last year's spare cash. On the sheet's default story the price sits above the middle of its value range, by 67%. Change the story and that moves.
What to look for Pay less than a cash-flow value estimate, with a margin of safety.
Source: Price $240.35, Yahoo Finance weekly snapshot, 30 Oct 2026; 10,786M shares, 10-Q 22 Jul 2026; FY2025 10-K, filed 6 Feb 2026; Stock valuation, 16 Oct 2026.
US figures: each company's Form 10-K as tagged on SEC EDGAR, collected 19 Oct 2026. Free cash flow is operating cash flow less purchases of property and equipment. Borrowings exclude leases. For education only. Not financial advice.
Ten years of financials
FY2016 to FY2025, in US dollars.
Source: Amazon, Form 10-K for each year as first filed, via SEC EDGAR XBRL. Latest: FY2025 10-K, filed 6 Feb 2026. Later restatements aren't applied.
How peers compare
Big tech platformsThe platforms are compared on growth, margins and how much of revenue turns into free cash once the capex bill is paid.
| Company | Revenue growth, 5y | Operating margin | FCF margin | P/E |
|---|---|---|---|---|
| AMZN | +13.2% a year | 11.2% | 1.1% | 33.5x |
| AAPL | +8.7% a year | 32.0% | 23.7% | 46.2x |
| MSFT | +14.6% a year | 46.8% | 20.2% | 29.1x |
| GOOGL | +17.2% a year | 32.0% | 18.2% | 25.9x |
| META | +18.5% a year | 41.4% | 22.9% | 26.2x |
- Peers' middle-half P/E
- 26.1x–33.4x (median 27.6x, 4 peers)
At the peers' middle-half P/E, Amazon's earnings per share from the FY2025 10-K would put the share between $187 and $239. Those are the peer bars in the valuation chart above — one way to read the price, not a target.
Prices: weekly screener snapshot, 30 Oct 2026. Profits: each company's latest annual filing via SEC EDGAR, as filed. Peers are hand-picked for this industry. A multiple compares one year's profit with today's price; it says nothing about what either does next.
Discounted cash flow, from Stock valuation
Ten years of free cash flow to the firm, from Amazon's latest figures and Damodaran's industry averages (Retail (General)). It's one story told with numbers, so it comes as a range.
- Value range, the default story$71.99–$250.74Middle $149.73 a share
- Price, 16 Oct 2026 close$250.00+66.96% ▲ against the middle
- What the price implies19.1% a yearGrowth in years 2–5 that makes value equal the price; the story uses 10.0%
To be worth today's price, Amazon would need to grow sales about 19.1% a year in years 2–5. One way to read this is to ask whether that sounds believable.
The story's assumptions
- Revenue, last 12 months
- $775,680M
- Operating margin now
- 12.1%
- Revenue growth, year 1
- 14.6%
- Revenue growth, years 2–5
- 10.0%
- Growth after year 10
- 5.1%
- Target operating margin, by year 5
- 12.1%
- Sales to capital, years 1–5 / 6–10
- 3.51 / 3.51
- Tax rate now / after year 10
- 22.7% / 25.0%
- Cost of capital, years 1–5
- 8.3%
- Cost of capital after year 10
- 8.7%
- Return on capital after year 10
- 11.1%
- Chance of failure
- 0.0%
Value per share as two inputs change (revenue growth, years 2–5 down, target operating margin across)
| Revenue growth, years 2–5 | 7.1% | 12.1% | 17.1% |
|---|---|---|---|
| 7.0% | $71.99 | $130.86 | $189.73 |
| 10.0% | $81.25 | $149.73 | $218.22 |
| 13.0% | $91.80 | $171.27 | $250.74 |
Middle cell: the default story. Each step is 3 points of growth or 5 points of margin.
| Year | Growth | Revenue | Margin | Operating income | Tax rate | After-tax income | Reinvestment | Free cash flow | Cost of capital | Present value |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 14.6% | $888,697M | 12.1% | $107,366M | 22.7% | $83,047M | $32,232M | $50,815M | 8.3% | $46,926M |
| 2 | 10.0% | $977,566M | 12.1% | $118,102M | 22.7% | $91,352M | $25,346M | $66,007M | 8.3% | $56,289M |
| 3 | 10.0% | $1,075,323M | 12.1% | $129,913M | 22.7% | $100,487M | $27,880M | $72,607M | 8.3% | $57,179M |
| 4 | 10.0% | $1,182,855M | 12.1% | $142,904M | 22.7% | $110,536M | $30,668M | $79,868M | 8.3% | $58,083M |
| 5 | 10.0% | $1,301,141M | 12.1% | $157,194M | 22.7% | $121,590M | $33,735M | $87,855M | 8.3% | $59,001M |
| 6 | 9.0% | $1,418,478M | 12.1% | $171,370M | 23.1% | $131,749M | $33,465M | $98,285M | 8.4% | $60,909M |
| 7 | 8.0% | $1,532,466M | 12.1% | $185,141M | 23.6% | $141,467M | $32,510M | $108,957M | 8.4% | $62,262M |
| 8 | 7.1% | $1,640,567M | 12.1% | $198,201M | 24.1% | $150,514M | $30,830M | $119,684M | 8.5% | $63,017M |
| 9 | 6.1% | $1,740,182M | 12.1% | $210,236M | 24.5% | $158,665M | $28,410M | $130,255M | 8.6% | $63,147M |
| 10 | 5.1% | $1,828,757M | 12.1% | $220,937M | 25.0% | $165,703M | $25,262M | $140,441M | 8.7% | $62,641M |
| After 10 | 5.1% | $1,921,841M | 12.1% | $232,183M | 25.0% | $174,137M | $79,565M | $94,572M | 8.7% | $1,171,723M |
- Present value of years 1–10
- $589,455M
- Present value after year 10
- $1,171,723M
- Less debt, plus cash
- −$128,650M
- Value of equity
- $1,632,529M
- Shares
- 10,903M
- Value per share, default story
- $149.73
Company figures: https://stockanalysis.com/stocks/amzn/statistics/, TTM to Jun 2026. Industry averages: Aswath Damodaran, January 2026 US data. Risk-free rates: US 10-year Treasury 5.09% and Singapore 10-year 2.34%, 16 Oct 2026. Equity risk premium: Damodaran's implied premium of 4.20%, 1 Oct 2026. Company figures are the latest reported before 19 Oct 2026. Data as of 16 Oct 2026. The sheet follows the spreadsheets Aswath Damodaran publishes; it is not affiliated with or endorsed by him. A model's value is not a price target. For education only. Not financial advice.
Who owns it, and what's the mood?
Tracked investors and insiders
Trades in Amazon by the people we follow: Warren Buffett and Michael Burry (13F), Grab's officers (Form 4) and Nancy Pelosi (House reports). They show what happened, often weeks later, not what to copy.
| Who | Did | Size | When | Disclosed |
|---|---|---|---|---|
| TemasekTemasek Holdings | AddedShares | +299,529 sharesabout $74,627,650 at quarter-end value | Q3 2026 | 28 Oct 202628 days after Q3 2026 ended |
| Jeff BezosExecutive Chair, Amazon | Gave awayShares | −230,637 shares | 26 Aug 2026 | 27 Aug 20261 day after the trade |
| Jeff BezosExecutive Chair, Amazon | Gave awayShares | −184,943 shares | 25 Aug 2026 | 27 Aug 20262 days after the trade |
| Bill AckmanPershing Square | TrimmedShares | −2,888,124 sharesabout $688,355,474 at quarter-end value | Q2 2026 | 14 Aug 202645 days after Q2 2026 ended |
| Stanley DruckenmillerDuquesne Family Office | AddedShares | +495,800 sharesabout $118,168,972 at quarter-end value | Q2 2026 | 14 Aug 202645 days after Q2 2026 ended |
| Stanley DruckenmillerDuquesne Family Office | AddedCall options | +259,300 shares under optionabout $61,801,562 at quarter-end value | Q2 2026 | 14 Aug 202645 days after Q2 2026 ended |
| David TepperAppaloosa | AddedShares | +680,000 sharesabout $162,071,200 at quarter-end value | Q2 2026 | 14 Aug 202645 days after Q2 2026 ended |
| Cathie WoodARK Investment Management | AddedShares | +235,894 sharesabout $56,222,976 at quarter-end value | Q2 2026 | 14 Aug 202645 days after Q2 2026 ended |
| Chase ColemanTiger Global Management | TrimmedShares | −316,442 sharesabout $75,420,786 at quarter-end value | Q2 2026 | 14 Aug 202645 days after Q2 2026 ended |
| Seth KlarmanBaupost Group | AddedShares | +625,100 sharesabout $148,986,334 at quarter-end value | Q2 2026 | 13 Aug 202644 days after Q2 2026 ended |
Sources: SEC EDGAR 13F-HR and Form 4 filings, and the US House Clerk's Periodic Transaction Reports, checked 30 Oct 2026. 13F values are the quarter-end value, not the price paid. Showing the 10 latest of 52. All tracked trades ›
- Largest shareholdersSoonThe biggest holders from 13F filings and the annual proxy statement.—
- Chief executive and board holdingsSoonShares held by the CEO and directors, from the proxy statement and Form 4s.—
- Short interestSoonHow many shares are sold short, from exchange short-interest reports.—
Crowd favourite or value trap?
Neither is a label we can put on a stock. These are signs worth looking into, each from a figure on this page.
Signs of a crowd-driven price
Meme stocks move on attention more than on results: big swings, a price far from cash-flow value, thin profits.
1 of 4 signs
- NoSwings at least twice as much as the marketBeta 1.49, 5 years of monthly returns
- NoUp more than 100%, or down more than 50%, in a year1-year price change −1.58%
- YesPrice more than 50% above the valuation sheet's middle valuePrice +67% against the sheet's default story, 16 Oct 2026
- NoThin profits: operating margin under 5%, or a lossFY2025 operating margin 11.2%
Signs of a value trap
A value trap looks cheap because the business is shrinking or earning less than its capital costs.
0 of 4 signs
- NoLooks cheap: P/E under 12 or FCF yield over 8%P/E 33.5x, FCF yield 0.3%
- NoRevenue lower than five years agoRevenue +13.2% a year over 5 years
- NoReturns below the cost of capital5-year average ROIC 28.2% against 7.3%
- NoMore than 30% below its 52-week high−16.3% from the 52-week high
Prices, beta and 1-year change: Yahoo Finance weekly snapshot, 30 Oct 2026. Business figures: the five questions under Valuation and financials. A sign is a reason to dig deeper, not a verdict. For education only. Not financial advice.
Read it through a lens
Price data: Yahoo Finance, delayed. Company figures: each company's own filings, dated where they appear. A ticker on this site is not a recommendation. For education only. Not financial advice.