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AM

Amazon.com, Inc.

AMZN

Consumer Cyclical · Specialty Retail · NASDAQ

$271.58

P/E 29.4×

CEO

Andrew R. Jassy

Sector

Consumer Cyclical

Industry

Specialty Retail

Amazon.com, Inc. operates a vast global retail enterprise, distributing consumer goods and subscription services through both its extensive online platforms and a network of physical stores across North America and internationally. Its operations are structured into three primary segments: North America, International, and Amazon Web Services (AWS). The company's product offerings encompass both merchandise and content procured for direct resale, alongside items sold by third-party merchants on its platform. Furthermore, the company develops and markets its own range of electronic devices, such as Kindle e-readers, Fire tablets and TVs, Ring, Blink, eero, and Echo products. It also invests in the development and production of original media content. Amazon provides various programs designed to enable independent sellers to offer their products, and empowers authors, musicians, filmmakers, Twitch streamers, and app developers to publish and commercialize their content. Beyond this, it delivers a comprehensive suite of cloud computing solutions, including compute, storage, database, analytics, and machine learning services through AWS. The company also offers fulfillment services, advertising solutions, and digital content subscriptions. A key offering is Amazon Prime, its exclusive membership program. Amazon caters to a wide array of clientele, including individual consumers, third-party sellers, software developers, enterprise clients, content creators, and advertisers. Incorporated in 1994, Amazon.com, Inc. maintains its headquarters in Seattle, Washington.

Investor model analysis

Investor Valuation

Intrinsic Value (DCF)

Warren Buffett's valuation model · select an investor above to switch

Decent fundamentals but some concerns. Investigate the failing criteria.

Intrinsic Value (DCF)

$0.51

Buy Below

$0.38

Strong Buy Below

$0.26

Margin of Safety

-99.8%

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Market expectations

What the market is pricing in

The yearly growth rate today's price already assumes — and what that means for a buyer

40%+/yr

Implied FCF growth

High expectations, high risk

The market expects near-perfect execution

What this means for you

The price assumes almost everything goes right — little cushion if Amazon.com, Inc. stumbles.

This is the yearly growth today's price already assumes if it holds for 10 years, then levels off to a steady 3% — the standard long-term DCF horizon.

Market is pricing in

40.0%/yr

Amazon.com, Inc.'s 5-yr track record

-54.4%/yr

Today's price assumes Amazon.com, Inc. grows FCF 40.0%/yr. Over the last 5 years it shrank 54.4%/yr — so the market's bar sits above its own track record.

FCF is noisier than earnings year-to-year, so treat a single year with caution — the 5-year track record is the anchor.

Scenario analysis

Bear, base & bull

Three growth assumptions, three fair values — and where today's price lands

Checklist highlights

Buffett model checklist

Top criteria from the Buffett analysis — select an investor below for all models

Return on Equity

ROE measures how efficiently the company uses shareholder equity. Buffett looks for consistent ROE above 15%, indicating a durable competitive advantage.

ROE Consistency

Consistent high ROE over many years suggests a durable moat. Buffett demands durability — at most one weak year is acceptable.

ROE Quality (Low Leverage)

Buffett prefers high ROE generated by business quality, not financial leverage.

Debt Levels

Buffett prefers companies that could pay off all debt within 3-4 years of free cash flow. Uses 3-year average FCF to smooth one-off fluctuations.

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Sell signals & exit criteria

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Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20252024202320222021
Revenue$716.9B
$638.0B
$574.8B
$514.0B
$469.8B
Rev. Growth-11.0%-9.9%-10.6%-8.6%
Net Income$77.7B$59.2B$30.4B-$2.7B$33.4B
Net Margin10.8%9.3%5.3%-0.5%7.1%
EPS (Diluted)$7.29$5.66$2.95$-0.27$3.30
Free Cash Flow████████████████████

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Educational Use Only · Not Financial Advice

Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.