# Amazon COM Inc. (AMZN)

> Amazon sells products, connects shoppers with outside sellers, sells advertising, and provides cloud computing services.

- Exchange: NASDAQ · Sector: Consumer Discretionary · Industry: Internet Retail
- Headquarters: Seattle, Washington
- Founded: 1994
- Employees: approximately 1,576,000 (December 31, 2025)
- SEC CIK: 0001018724 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001018724))
- Full page: https://inspectstocks.com/stocks/amzn
- Data as of: price 2026-09-25; newest filing used 2026-07-31; latest fiscal period ended 2026-06-30

## Grade

**D** on the growth-and-cash rubric, 2 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $775.7B | $538B |
| Revenue growing recently | passed | $775.7B | $716.9B |
| Free cash flow positive | failed | -$11.6B |  |
| Free cash flow growing overall | failed | -$11.6B | $3.2B |
| Free cash flow growing recently | failed | -$11.6B | $7.7B |

Business quality (the + / − mark): 4 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 17.4% |  |
| Healthy profit margin | passed | 17.4% |  |
| Strong operating margin | failed | 12.1% |  |
| Good return on equity | passed | 32.9% |  |
| Debt under control | passed | 0.41 |  |
| Turns sales into cash | failed | -1.5% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $775.7B |
| Net income, trailing twelve months | $135.3B |
| Free cash flow, trailing twelve months | -$11.6B |
| Net margin | 17.4% |
| Operating margin | 12.1% |
| Return on equity | 32.9% |
| Debt to equity | 0.41 |
| Diluted EPS, trailing twelve months | $12.43 |
| Share price | $249.67 |
| Market value | $2.69T |
| Price / earnings | 20.1x |
| Price / sales | 3.5x |

## What the business does

Amazon sells goods through its online and physical stores and lets other sellers list products and use its shipping and order-handling services. Through Amazon Web Services (AWS), it rents computing power, data storage, databases, and other technology services to businesses, developers, and government customers. It also earns money from advertising, Prime memberships, electronic devices, and digital entertainment.

### How it makes money

- **North America retail and related services** (57.9% (Q2 2026)) — Revenue was $116.2 billion (Q2 2026, high). It includes products Amazon sells itself, fees and shipping services for outside sellers, advertising, and subscriptions.
- **International retail and related services** (21.0% (Q2 2026)) — Revenue was $42.2 billion (Q2 2026, high). It includes product sales and services such as seller fees, advertising, and subscriptions in markets outside North America.
- **Amazon Web Services** (21.1% (Q2 2026)) — Revenue was $42.2 billion (Q2 2026, high). Customers pay to use computing, storage, databases, artificial intelligence, and other technology services.

### Products

- **Amazon online and physical stores** — Places where shoppers buy products across many categories, including goods sold by Amazon and by outside sellers.
- **Seller programs and fulfillment services** — Services that let outside businesses list products, pay selling fees, and use Amazon to store, pack, and ship orders.
- **Amazon Web Services** — Rentable computing, storage, database, analytics, artificial intelligence, and other technology services for organizations and developers.
- **Advertising services** — Paid sponsored listings, display ads, and video ads shown to shoppers and viewers.
- **Amazon Prime** — A paid membership with shipping benefits, movies and series, live sports, and other services.
- **Amazon devices** — Consumer electronics including Kindle, Fire tablets, Fire TV, Echo, Ring, Blink, and eero products.

### Customers

- Consumers buy goods through Amazon's websites, apps, and physical stores.
- Outside sellers pay fees to list goods and may pay Amazon to store, pack, and ship orders.
- Businesses, developers, government agencies, and academic institutions pay to use AWS services.
- Advertisers pay to show sponsored listings, display ads, and video ads.
- Prime members pay a subscription fee for shipping, entertainment, and other membership benefits.
- Authors, publishers, musicians, filmmakers, and other creators use Amazon programs to publish or sell content.

### Competitors

- Walmart (WMT) — Stores and online sales of groceries and other consumer goods.
- eBay (EBAY) — Online marketplaces where shoppers buy goods from outside sellers.
- Microsoft (MSFT) — Cloud computing services through its Azure business, which competes with AWS.
- Alphabet (GOOGL) — Google Cloud competes with AWS; Google also competes for digital advertising.
- Alibaba Group (BABA) — Online marketplaces and cloud computing services.
- Shopify (SHOP) — Software and services that help merchants run online stores and manage sales.

### What it depends on

- Retail sales and deliveries depend on Amazon's fulfillment centers, transportation network, stores, and technology systems working reliably.
- AWS and other services depend on data centers, servers, networking equipment, and a dependable electricity supply.
- Amazon's stores depend on product suppliers, while its marketplace depends on outside sellers listing goods and following applicable rules.
- Operations in many countries expose Amazon to local laws, trade policies, taxes, and currency changes.

### What could go wrong

- A failure or disruption in fulfillment facilities, data centers, networks, or other systems could interrupt deliveries or online and cloud services; security incidents could expose or damage data.
- Fraudulent or unlawful activity by outside sellers, or products that harm people or property, could lead to customer harm, legal claims, or government action.
- Supplier or transportation disruptions, trade and tariff changes, and shortages or price increases for components such as memory chips could affect product availability and operating costs.

## More on this company

- [Overview](https://inspectstocks.com/stocks/amzn)
- [Financial statements](https://inspectstocks.com/stocks/amzn/financials)
- [Competitors](https://inspectstocks.com/stocks/amzn/peers)
- [Earnings](https://inspectstocks.com/stocks/amzn/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.