Stock Spotlight: Amazon.com Inc (NASDAQ:AMZN)
About Amazon.com Inc
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, fire tablets, fire TVs, echo, ring, blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.
Key Stats
Key Stats
Source: Yahoo Finance. Data as of 12/08/25.
Price Performance
Growth Potential
- Well positioned as a market leader in e-commerce and cloud computing. AMZN has a strong products business (online & physical stores) but also has a fast growing services business (3rd party sellers, subscriptions, AWS, advertising) which could demand a higher valuation multiple.
- AWS is well placed to capture the growth in generative AI, cloud and shift to digital economy. According to AMZN, 85-90% of worldwide IT spend is still on-premises versus in the cloud. AWS' functionality, stronger security (critical to customers) and deep experience are best placed to help enterprises to make the transition.
- Strong operating cash flow profile provides the Company with a significant amount of flexibility.
- Large base of loyal customers & entry into new regions.
- Re-accelerating investment expenditure should be positive for future revenue and earnings growth as long as AMZN can achieve adequate ROIC.
Key Risks
- De-acceleration in revenue across key operating segments.
- Increased investments fail to yield adequate returns to justify AMZN’s trading multiples. Rising capital expenditure could adversely impact free cash flow profile.
- Increased e-commerce competition domestically and internationally.
- Decrease in operating margins of AWS due to increased competition and price cuts.
- Increased regulatory scrutiny.
- Increase in overheads like free shipping and higher labor cost leading to margin contraction.
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Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.










