AMZN
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XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $14.8B | $19.2B | $24.5B | $34.2B | $48.1B | $61.1B | $74.5B | $89.0B | $107.0B | $136.0B | $177.9B | $232.9B | $280.5B | $386.1B | $469.8B | $514.0B | $574.8B | $638.0B | $716.9B | +12.4% |
| Gross Profit | $3.4B | $4.3B | $5.5B | $7.6B | $10.8B | $15.1B | $20.3B | $26.2B | $35.4B | $47.7B | $65.9B | $93.7B | $115.0B | $152.8B | $197.5B | $225.2B | $270.0B | $311.7B | $360.5B | +15.7% |
| Gross Margin | 22.6% | 22.3% | 22.6% | 22.3% | 22.4% | 24.8% | 27.2% | 29.5% | 33.0% | 35.1% | 37.1% | 40.2% | 41.0% | 39.6% | 42.0% | 43.8% | 47.0% | 48.9% | 50.3% | +1.4pp |
| Operating Income | $655.0M | $842.0M | $1.1B | $1.4B | $862.0M | $676.0M | $745.0M | $178.0M | $2.2B | $4.2B | $4.1B | $12.4B | $14.5B | $22.9B | $24.9B | $12.2B | $36.9B | $68.6B | $80.0B | +16.6% |
| Operating Margin | 4.4% | 4.4% | 4.6% | 4.1% | 1.8% | 1.1% | 1.0% | 0.2% | 2.1% | 3.1% | 2.3% | 5.3% | 5.2% | 5.9% | 5.3% | 2.4% | 6.4% | 10.8% | 11.2% | +0.4pp |
| Net Income | $476.0M | $645.0M | $902.0M | $1.2B | $631.0M | -$39.0M | $274.0M | -$241.0M | $596.0M | $2.4B | $3.0B | $10.1B | $11.6B | $21.3B | $33.4B | -$2.7B | $30.4B | $59.2B | $77.7B | +31.1% |
| Net Margin | 3.2% | 3.4% | 3.7% | 3.4% | 1.3% | -0.1% | 0.4% | -0.3% | 0.6% | 1.7% | 1.7% | 4.3% | 4.1% | 5.5% | 7.1% | -0.5% | 5.3% | 9.3% | 10.8% | +1.5pp |
| Free Cash Flow | $1.2B | $1.4B | $2.9B | $2.5B | $2.1B | $395.0M | $2.0B | $1.9B | $7.3B | $9.7B | $6.5B | $17.3B | $21.7B | $25.9B | -$14.7B | -$16.9B | $32.2B | $32.9B | $7.7B | -76.6% |
| FCF Margin | 8.0% | 7.1% | 11.9% | 7.4% | 4.4% | 0.6% | 2.7% | 2.2% | 6.9% | 7.1% | 3.6% | 7.4% | 7.7% | 6.7% | -3.1% | -3.3% | 5.6% | 5.2% | 1.1% | -4.1pp |
| EPS (Diluted) | $1.12 | $1.49 | $2.04 | $2.53 | $1.37 | $-0.09 | $0.59 | $-0.52 | $1.25 | $4.90 | $6.15 | $20.14 | $23.01 | $41.83 | $64.81 | $-0.27 | $2.90 | $5.53 | $7.17 | +29.7% |
1. THE BIG PICTURE
Amazon is currently a tale of two companies: a high-growth cloud and advertising business that is subsidizing a massive, capital-intensive bet on the future of AI and infrastructure. While revenue continues to climb at double-digit rates, Amazon is trading its current financial flexibility for a projected $200 billion investment cycle in 2026, positioning itself as the essential utility for the next generation of technology.
2. WHERE THE RISKS HIT HARDEST
Amazon’s "passion for invention" (10-K Item 1) is directly threatened by expansion risks, as the significant capital required for AI and machine learning could lead to massive asset write-downs if these technologies fail to achieve expected profitability (RISKS). Furthermore, the commitment to "low prices and fast delivery" (10-K Item 1) is increasingly vulnerable to rivals with "greater resources" or "more aggressive pricing" (10-K Item 1). This forces Amazon to keep spending on its fulfillment network even as it attempts to fund "seminal opportunities" like low earth orbit satellites, creating a scenario where infrastructure costs could outpace retail profits.
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a stark divergence between Amazon’s growth narrative and its operational efficiency. While revenue grew 12.4% over the last twelve months and AWS growth accelerated to 24% in the most recent quarter (8-K), Amazon’s free cash flow margin of -0.6% is the lowest among its mega-cap peers (XBRL). By comparison, Nvidia and Meta maintain FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margins of 43.0% and 26.3%, respectively. This negative cash flow is a direct result of Amazon’s decision to recycle every dollar of profit back into the business; Amazon offers no dividends or buybacks, while Apple and Alphabet provide buyback yields of 2.5% and 1.5% (XBRL). The 14% sales growth in the fourth quarter suggests the core business is healthy, but the $200 billion CapExCapExCapital Expenditures — money spent on physical assets like factories, servers, or infrastructure guidance for 2026 indicates that the era of "brisk" growth will be extremely expensive to maintain.
4. IS IT WORTH IT AT THIS PRICE?
At 23.0x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Amazon trades exactly in line with the peer median of 22.9x (Yahoo Finance). The market is currently pricing in approximately 8.0% long-term growth (CAPM analysis). This appears attainable given that sales grew 14% in the most recent quarter (8-K), but the valuation is difficult to justify when compared to peers with superior profit profiles. For example, Microsoft trades at a lower forward multiple (21.5x) while maintaining a 38.9% net margin, nearly four times higher than Amazon’s 10.8% (XBRL). If Amazon’s long-term growth were to slow to 5%, the justified multiple would drop to 13.7x, implying a 40% decline from current levels (CAPM analysis). Investors are currently paying a "fair" price only if they believe Amazon’s massive infrastructure investments will eventually yield the high-margin cash flows seen at its software-heavy peers.
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if the -0.6% free cash flow margin turns positive while AWS maintains growth above 20%, signaling that the heavy investment cycle is beginning to pay off.
- Cautious if the $200 billion CapExCapExCapital Expenditures — money spent on physical assets like factories, servers, or infrastructure plan for 2026 leads to further margin compression or if the "triple digit" growth in the chips business (8-K) decelerates, suggesting a loss of momentum in AI hardware.
- Cautious if regulatory scrutiny regarding the fulfillment network or cloud services results in "forced changes to business practices" that increase structural operating costs (RISKS).
6. BOTTOM LINE
Structural Advantage: A global, proprietary fulfillment network and a dominant cloud infrastructure (AWS) that create massive switching costs for enterprises and high barriers to entry for retail competitors. Bottom Line: Amazon is a high-stakes bet on infrastructure dominance that currently lacks the cash-flow efficiency of its Big Tech peers.
1. Top 5 Material Risks
- Intense Competition: Amazon faces competition across physical, e-commerce, and cloud services from rivals that may have greater resources or more aggressive pricing strategies, which could force Amazon to lower prices or increase marketing and infrastructure spending.
- Expansion Risks: Investments in new products, services, and technologies—such as artificial intelligence and machine learning—are often significant, and failure to achieve expected profitability could lead to asset write-downs.
- International Operations: Amazon’s international expansion is costly and subject to risks including local economic conditions, government regulation, and currency exchange fluctuations, which may prevent these operations from becoming profitable on a sustained basis.
- Retail Variability: Seasonal demand, particularly in the fourth quarter, places strain on Amazon’s fulfillment network; failure to accurately predict demand can lead to inventory markdowns, write-offs, and increased shipping costs.
- Intellectual Property: Amazon relies on proprietary technology and trademarks, and the cost of protecting these rights is significant; conversely, Amazon faces ongoing claims of intellectual property infringement that can result in substantial damages or injunctions.
2. Company-Specific Risks
- Third-Party Seller Fraud: Amazon faces potential civil or criminal liability for unlawful activities by third-party sellers, and the costs associated with the A-to-z Guarantee program increase as third-party sales grow.
- Fulfillment Network Complexity: Managing inventory for other companies increases operational complexity, and failure to optimize this network or predict seller demand for storage can lead to unexpected costs and reputational damage.
- Data Security: As a processor of large amounts of sensitive data, Amazon is exposed to risks from security incidents that could result in litigation, regulatory action, and loss of customer trust.
- Key Personnel: Amazon depends on senior management and highly skilled technical staff, particularly in artificial intelligence; the inability to hire or retain this talent could harm the business.
3. Regulatory/Legal Risks
- Antitrust and Competition: Amazon is subject to open investigations regarding its store operations, fulfillment network, Prime, and AWS cloud services, with potential outcomes including substantial monetary fines or requirements to change business practices.
- Global Tax Frameworks: Amazon faces risks from new revenue-based taxes on online commerce and marketplace services, as well as global minimum taxes, which could increase tax expenses.
- India and China Regulations: Regulatory requirements in India and China restrict foreign ownership and operations; changes in these laws or their interpretation could force Amazon to restructure or shut down operations in these countries.
- Government Contracts: Amazon’s contracts with government entities are subject to procurement regulations, and violations could lead to contract termination, debarment, or forfeiture of profits.
4. Financial Impact Map
Intense Competition → Net Sales and Operating Profit → Increased spending or lower prices required to maintain market position. Expansion/New Technology Investments → Assets (Goodwill/Intangible Assets) → Potential write-downs or write-offs if investments fail to meet expectations. International Operations → Cash, Cash Equivalents, and Marketable Securities → Fluctuations in foreign currency exchange rates can cause balances to be materially less than expected when translated. Retail Variability/Seasonality → Accounts Payable and Cash → Cash balances typically reach their highest level on December 31, followed by a decline in the first quarter as accounts payable are settled. A-to-z Guarantee/Seller Fraud → Operating Results → Costs increase as third-party seller sales grow, negatively impacting profitability.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Feb 2026 | — |
| 10-Q | Oct 2025 | Sep 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Wells Fargo names Amazon top 2026 internet pick, raises price target to $305
- ▸Wells Fargo raises Amazon price target to $305 from $304
- ▸AWS Q4 revenue $35.6B, +24% YoY
- ▸Advertising services Q4 revenue $21.3B, +23% YoY
- ▸2025 full-year revenue $716.92B with $79.98B operating income
- ▸2026 capital expenditure guidance maintained at approximately $200B
Amazon in talks to acquire Globalstar in $9 billion satellite telecommunications deal
- ▸Amazon in negotiations to acquire Globalstar for approximately $9 billion
- ▸Globalstar shares rose 12.36% in pre-market trading following reports
- ▸Apple holds 20% stake in Globalstar, requiring separate negotiation for deal completion
- ▸Globalstar currently reserves 85% of network capacity for Apple emergency satellite features
- ▸Acquisition would bolster Amazon's Project Kuiper to compete with SpaceX Starlink
Amazon leads $122B OpenAI funding round with $50B commitment, diversifying from Microsoft
- ▸Amazon investing $50B total in OpenAI, starting with $15B immediate capital
- ▸OpenAI valuation reaches $852B following $122B funding round
- ▸OpenAI to utilize Amazon Trainium chips and cloud infrastructure
- ▸Nvidia and SoftBank each contributing $30B to the funding round
- ▸OpenAI generating $2B monthly revenue, targeting 2026 IPO
OpenAI Valuation Hits $852 Billion Following $122 Billion Funding Round
- ▸OpenAI valuation reaches $852 billion
- ▸Funding round raised $122 billion
- ▸Amazon and ARK Invest participated as backers
- ▸Funding round precedes anticipated IPO
Amazon and ARK Invest Back OpenAI in Record $122 Billion Funding Round
- ▸OpenAI secures $122 billion in new funding round
- ▸Amazon and ARK Invest identified as primary participants
- ▸OpenAI valuation reaches $852 billion ahead of planned IPO
- ▸Funding round marks record capital injection for AI sector
- ▸Microsoft remains key strategic partner and investor in OpenAI
Corti Launches Symphony Medical Coding AI, Claims 25% Accuracy Edge Over Big Tech Models
- ▸Symphony for Medical Coding model released for US and European markets
- ▸Claims 25% higher clinical accuracy than OpenAI, Anthropic, Amazon, Oracle, and Google
- ▸Built on multi-agent framework trained on 5.8 million patient encounters
- ▸Designed to automate ICD-10-CM coding and clinical data structuring
- ▸Available immediately via API for healthcare software developers
Fundrise CEO Ben Miller dismisses Citron short call, defends long-term AI investment strategy
- ▸Fundrise Innovation Fund (VCX) price moderated from $550 to $100 per share
- ▸CEO Ben Miller labels Citron short call as irrelevant to long-term strategy
- ▸Current short interest in VCX reported at 1% to 2%
- ▸Management rejects comparison to Destiny Tech 100 portfolio performance
- ▸Fund emphasizes long-term exposure to private AI and deep tech companies
OpenAI raises $122B at $852B valuation ahead of expected public market debut
- ▸Raised $122B at $852B valuation in largest funding round to date
- ▸Generating $2B revenue per month with 900M weekly active users
- ▸Ads pilot reached $100M ARR in under six weeks
- ▸Business segment accounts for 40% of total revenue
- ▸Expanded revolving credit facility to $4.7B
Amazon Q4 Advertising Revenue $21.3B, Up 22% YoY on Strong Sponsored Product Demand
- ▸Q4 advertising revenue $21.3B, +22% YoY
- ▸Prime Video ad-supported model reaches 315 million global viewers
- ▸Q1 2026 advertising revenue projected at $16.9B, +21.3% YoY
- ▸Prime Video advertising expanding to Belgium, Denmark, Norway, and Turkey in 2026
- ▸Sponsored products remain primary driver of segment growth
Amazon Project Kuiper to provide satellite Wi-Fi for 500 Delta aircraft by 2028
- ▸Amazon Project Kuiper to equip 500 Delta Air Lines planes with satellite Wi-Fi
- ▸Service rollout scheduled to begin in 2028
- ▸Project Kuiper has deployed over 200 satellites since 2025
- ▸Amazon has committed at least $10 billion in funding to Project Kuiper
- ▸Partnership expands competitive pressure on SpaceX Starlink in satellite internet market