Key Takeaways
- Quality scores 67/100 on a 13.7% operating margin, though a 17.4% net margin above the operating margin points to non-operating gains.
- Revenue grew 19.6% over the trailing twelve months, faster than the 11.7% five-year CAGR, on a $775.7B base.
- Opportunity is 31/100: a 21.11 P/E looks reasonable, but a 0.1% FCF yield and the shares near their two-year high at $262.35 leave little cushion.
Amazon.com, Inc. trades at $262.35, about 4% below its two-year high, with $775.7B of revenue growing 19.6% over the trailing twelve months and earnings up 242.3% over the same period. Yet free cash flow was only $3.2B, a sliver of sales, as the company pours money into data-center capacity. This Amazon.com, Inc. stock analysis weighs that tension across the three pillars of our scoring model.
What Is Happening With the Stock Price
Amazon’s two-year range runs from $171.00 to $274.48, so at $262.35 the shares sit in the upper end of the range, roughly 53% above the low. The market capitalization stands at $2829.75B. Trading this close to the high reflects confidence in the company’s growth, but it also means the price carries less cushion if spending runs ahead of returns or growth cools.
Quality: Is This a Financially Sound Business?
Quality scores 67/100. Amazon earns a 50.8% gross margin and a 13.7% operating margin. The 17.4% net profit margin is unusual because it sits above the operating margin, which normally should not happen after tax. That gap usually points to large non-operating gains, such as increases in the value of investment holdings. Those gains also lift return on equity (30.6%) and likely explain much of the 242.3% trailing earnings growth, but they may not recur. For this Amazon.com, Inc. stock analysis, the 13.7% operating margin is the cleaner measure of profitability. Return on assets is 6.6%.
Cash flow is the weak spot. Free cash flow of $3.2B is less than half a cent for every dollar of revenue, which is consistent with very heavy capital spending; management has reportedly guided to around $220 billion of cash capital expenditure for 2026. The balance sheet is sound, with debt-to-equity of 0.46, but liquidity is tight, with a current ratio of 1.03 and a quick ratio of 0.84, and the company has also been raising money through bond sales.
Growth: Does This Company Have Real Upside?
Growth scores 52/100. Revenue growth of 19.6% over the trailing twelve months is faster than the 11.7% five-year CAGR, an acceleration that is notable on a base of $775.7B. Reported results showed AWS sales up 37% in the second quarter of 2026, and that cloud business is the main destination for the new capacity. EV/Revenue of 3.82 is moderate for a company growing at this pace. The 242.3% earnings growth figure should be treated with caution, given the non-operating gains noted above.
Opportunity: Is Now a Good Time to Enter?
Opportunity scores 31/100, the weakest pillar. The P/E of 21.11 on earnings per share of $12.43 looks reasonable, but it is flattered by non-operating gains. EV/EBITDA of 17.52 and price-to-book of 5.13 point to a fuller valuation, and the free cash flow yield is just 0.1%. Amazon pays no dividend. With the shares in the upper end of their two-year range, the current price leans on the investment cycle paying off rather than on today’s cash generation.
Amazon.com, Inc. Stock Analysis: The Bottom Line
StreetBriefs’ scoring model rates Amazon a Hold, with a Recommendation Score of 50/100. The bull case is accelerating revenue growth on an enormous base, a solid 13.7% operating margin and strong reported demand for its cloud services. The bear case is that free cash flow has almost disappeared under heavy spending, headline earnings are lifted by non-operating gains and the shares trade near their two-year high. The main risk is that the returns on this capacity build-out arrive later, or prove smaller, than the price assumes.
This Amazon.com, Inc. stock analysis presents Hold as a quantitative model signal for further research, not a personalized recommendation to transact. Investors weighing the name might watch whether free cash flow recovers as the new capacity comes online. All equities carry risk, including the largest ones.
Financial Metrics Summary
| Metric | Value |
|---|---|
| Price & Valuation | |
| Current Price | $262.35 |
| 2-Year Low | $171.00 |
| 2-Year High | $274.48 |
| Market Cap | $2829.75B |
| P/E Ratio | 21.11 |
| EV / Revenue | 3.82 |
| Our Scores | |
| Quality Score | 67 / 100 |
| Growth Score | 52 / 100 |
| Opportunity Score | 31 / 100 |
| Profitability | |
| Earnings Per Share | $12.43 |
| Return on Assets | 6.6% |
| Return on Equity | 30.6% |
| Net Profit Margin | 17.4% |
| Gross Margin | 50.8% |
| Operating Margin | 13.7% |
| Growth | |
| Revenue Growth (5Y CAGR) | 11.7% |
| Revenue Growth (TTM) | 19.6% |
| Earnings Growth (TTM) | 242.3% |
| Balance Sheet | |
| Debt-to-Equity | 0.46 |
| Current Ratio | 1.03 |
| Quick Ratio | 0.84 |
| Income & Dividends | |
| Dividend Yield | 0.0% |
| Payout Ratio | 0.0% |
Data as of October 21, 2026
Our Three-Pillar Assessment
| Quality |
67/100 |
| Growth |
52/100 |
| Opportunity |
31/100 |
Quality measures business fundamentals: profitability, cash flow discipline, and balance sheet strength.
Growth captures revenue momentum, gross margin scalability, and the Rule of 40 efficiency test.
Opportunity signals entry timing: current valuation versus history and price position in the 2-year range.
Current price: $262.35 trading 4% below its 2-year high of $274.48.
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This analysis is done using financial data from Yahoo Finance.
Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.