Amazon.com, Inc. (AMZN) stock analysis

In our weekly check, Amazon.com, Inc. is graded B (A to F). Of 23 checks on debt, profit, cash flow and trend: 18 pass, warnings: 1, red flags: 4.

About Amazon.com, Inc.

Amazon.com, Inc. is a Consumer Cyclical company (Internet Retail) based in the United States, listed on NASDAQ as AMZN.

What our checks show for AMZN

Red flags

• Analysts expect the net margin to shrink by 4.3 points from today's 17.4%.
• Free cash flow is negative (-1.5% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 65% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Beta 1.46: the stock usually moves more than the market, both up and down.

Strengths

• Net debt is only 0.6x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 28.1 times over.
• The net margin rose by 10.3 points over 5 years, to 17.4%.
• The gross margin is 50.8% and has risen by 8.7 points: pricing power is holding.
• Analysts expect revenue to grow about 15.2% a year over the next years.
• Earnings per share grew 260% a year over the last 3 years.

Next earnings report: 2026-10-29

Similar companies

WMT · COST · MSFT · SHOP · MELI

Questions

What grade does Amazon.com, Inc. (AMZN) have?

In our weekly check, Amazon.com, Inc. is graded B (A to F). Of 23 checks on debt, profit, cash flow and trend: 18 pass, warnings: 1, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of AMZN stock?

This week's biggest flags for Amazon.com, Inc.: Margins expected to shrink, Weak free cash flow, Deep past fall. In total 5 of 23 checks show a warning or a red flag.

What does Amazon.com, Inc. do?

Amazon.com, Inc. is a Consumer Cyclical company (Internet Retail) based in the United States, listed on NASDAQ as AMZN.

When does Amazon.com, Inc. report earnings next?

The next earnings report is expected on 2026-10-29. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis