AMAZON COM INC (AMZN)

Price—Loading quote

AI: Overvalued

Price checkThe market price demands years of rapid growth, leaving little room for disappointment.

At the August 14 close of $262.65, 10.783 billion June shares imply a $2.83 trillion market value. Adding $54.3 billion of net debt gives roughly $2.89 trillion against $93.7 billion of trailing operating profit, or about 31 times. The price is also 36.6 times 2025 earnings, while trailing free cash flow—cash left after running and investing in the business—was negative $7.6 billion. That combination supports Overvalued, despite unusually strong growth.

Big pictureProfits are climbing quickly, but today’s investment surge has erased spare cash.

Annual revenue climbed from $514 billion in 2022 to $717 billion in 2025, while operating income rose from $12.2 billion to $80.0 billion. In the June 2026 quarter, sales grew 20% and operating income grew 43%. Cash durability is less proven: 2025 operating cash of $139.5 billion barely exceeded $131.8 billion of capital spending, and trailing free cash flow fell to negative $7.6 billion. Retail demand remains tied to consumer spending, while cloud now drives most profit.

Business strengthCloud profits and retail scale are powerful, while the balance sheet remains manageable.

Amazon Web Services produced $42.2 billion of second-quarter sales, up 37%, and $16.6 billion of operating income—about 60% of Amazon’s total. North American and international sales also grew 16% and 15%, showing broad momentum. Liquidity remains substantial, with $78.2 billion of cash and current assets slightly above current liabilities. However, debt reached $132.5 billion, creating $54.3 billion of net debt and reversing December’s $18.0 billion net-cash position. The cushion is still adequate, but it has weakened quickly.

What could change the storySuccessful artificial intelligence spending could justify the price; weak returns would deepen the downside.

The strongest bull case is that Amazon’s planned $220 billion of 2026 capital spending creates profitable cloud capacity for 2027 and beyond. Even $100 billion of eventual annual free cash flow would equal only 3.5% of today’s market value, so execution must be excellent. The bear case strengthens if 37% cloud growth slows before capacity fills. Shares outstanding increased 1.8% from 2024 to June 2026, while 2025 stock compensation was $19.5 billion. With no dividend and no reported 2023–2024 buybacks, shareholder returns depend heavily on reinvestment.

$262.65 price considered

AI: News

Cloud growth acceleratesAmazon’s cloud business accelerated sharply, lifting profits and resetting expectations for future growth.

On July 30, Amazon reported second-quarter sales of $200.6 billion, up 20%, and operating income of $27.5 billion, up 43%. Cloud sales grew 37%, the fastest pace in 18 quarters. Reported net income of $62.6 billion included a $53.4 billion pre-tax investment gain, so it overstates operating progress. Shares rose 15.3% the next session. That timing is consistent with a favorable reaction, although it cannot prove the report was the only cause.

Spending plan risesAmazon raised its investment budget, sacrificing near-term cash for more computing capacity.

On July 30, management raised expected 2026 capital spending to approximately $220 billion from $200 billion, versus about $128 billion in 2025. Spending is directed mainly toward artificial intelligence infrastructure, alongside robots, chips, and satellites. Trailing free cash flow had already fallen from positive $18.2 billion to negative $7.6 billion. The larger plan could remove cloud-capacity constraints and support growth, but it also increases the future earnings required to justify Amazon’s valuation.

Borrowing capacity expandsAmazon added borrowing capacity as artificial intelligence investments rapidly consumed cash.

On June 8, Amazon entered a $17.5 billion senior unsecured delayed-draw term facility, which expires if unused by September 30 and matures three years after borrowing. The filing does not say the facility was drawn. By June 30, supplied figures showed $78.2 billion of cash and $132.5 billion of debt. The added capacity can support infrastructure and strategic investment, but it would introduce more interest expense if used. No reliable immediate stock-price reaction was identified.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$716.92B	$637.96B	$574.78B	$513.98B	$469.82B	$386.06B	$280.52B	$232.89B	$177.87B	$135.99B	$107.01B	$88.99B	$74.45B	$61.09B	$48.08B	$34.20B	$24.51B	$19.17B	$14.84B
Gross profit	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	$5.53B	$4.27B	$3.35B
Operating expenses	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	$4.40B	$3.43B	$2.70B
Operating income	$79.97B	$68.59B	$36.85B	$12.25B	$24.88B	$22.90B	$14.54B	$12.42B	$4.11B	$4.19B	$2.23B	$178.0M	$745.0M	$676.0M	$862.0M	$1.41B	$1.13B	$842.0M	$655.0M
EBITDAderived	$145.73B	$121.39B	$85.52B	$54.17B	$59.31B	$48.08B	$36.33B	$27.76B	$15.58B	$12.30B	$8.51B	$3.79B	$3.21B	$2.33B	$1.90B	$1.96B	$1.51B	$1.15B	$901.0M
Net income	$77.67B	$59.25B	$30.43B	−$2.72B	$33.36B	$21.33B	$11.59B	$10.07B	$3.03B	$2.37B	$596.0M	−$241.0M	$274.0M	−$39.0M	$631.0M	$1.15B	$902.0M	$645.0M	$476.0M
Basic EPSper diluted share	$7.29	$5.66	$2.95	-$0.27	$3.30	$2.13	$23.46	$20.68	$6.32	$5.01	$1.28	-$0.52	$0.60	-$0.09	$1.39	$2.58	$2.08	$1.52	$1.15
Diluted EPSper diluted share	$7.17	$5.53	$2.90	-$0.27	$3.24	$2.09	$23.01	$20.14	$6.15	$4.90	$1.25	-$0.52	$0.59	-$0.09	$1.37	$2.53	$2.04	$1.49	$1.12

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)313$10.97B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 1, 2026Form 4 · 10b5-1	Herrington Douglas JCEO Worldwide Amazon Stores	SellCommon Stock, par value $.01 per share	1.0K	$266.19	$266.2K	485.5K
May 22, 2026Form 4 · 10b5-1	Zapolsky DavidSenior Vice President	SellCommon Stock, par value $.01 per share	9.3K	$268.53	$2.49M	41.2K
May 21, 2026Form 4 · 10b5-1	Garman Matthew SCEO Amazon Web Services	SellCommon Stock, par value $.01 per share	433	$265.64	$115.0K	14.2K
May 21, 2026Form 4 · 10b5-1	Garman Matthew SCEO Amazon Web Services	SellCommon Stock, par value $.01 per share	2.5K	$264.95	$671.4K	14.6K
May 21, 2026Form 4 · 10b5-1	Garman Matthew SCEO Amazon Web Services	SellCommon Stock, par value $.01 per share	3.7K	$264.03	$974.0K	17.1K

Review ownership filings at SEC.gov ↗

AMAZON COM INC (AMZN)

Financial charts

Financial statements

Insider buys & sells