Amazon (NASDAQ:AMZN): A Comprehensive Financial Analysis

Amazon (NASDAQ:AMZN) is a global leader in e-commerce and cloud computing. Known for its vast online marketplace, Amazon generates about 80% of its revenue from selling physical goods and services like Prime. The remaining 20% comes from its cloud computing division, Amazon Web Services (AWS). Despite its high valuation, Bank of America Securities maintains a "Buy" rating for Amazon.

Amazon's stock is currently trading at $171.18, as reported by Benzinga. This comes after a significant decline of over 30% from its peak in early February. The downturn is largely due to concerns over tariff-induced economic weakness affecting the broader market. Despite this, some investors believe the market may be underestimating Amazon's potential.

The stock price today is $171.17, reflecting a 2.30% increase, or $3.85. During the trading day, it fluctuated between $169.37 and $171.26. Over the past year, Amazon's stock has seen a high of $242.52 and a low of $151.61. This volatility highlights the challenges and opportunities in the current market environment.

Amazon's market capitalization is approximately $1.82 trillion, underscoring its significant presence in the global market. Today's trading volume on the NASDAQ is 6,545,944 shares, indicating strong investor interest. Despite being a target for bearish investors, some see this as an opportunity to buy Amazon stock while it is undervalued.

Amazon.com (NASDAQ:AMZN) shares fell nearly 2% pre-market today after Raymond James downgraded the company from Strong Buy to Outperform and cut its price target to $195 from $275, citing rising near-term margin risks and a cloudier investment return timeline. While the firm remains positive on Amazon’s long-term AI and infrastructure initiatives, it believes the market is underestimating the potential EBIT pressure for 2025 and 2026.

Analysts highlight that Amazon’s exposure to China—accounting for roughly 30% of GMV and 15% of ad revenue—along with its dependence on U.S. rural delivery services, could create drag as the company diversifies its supply chain and logistics network in response to macro uncertainty and new tariff threats.

While long-term fundamentals remain intact, the report suggests other names like Meta, Uber, and MercadoLibre offer clearer ROI visibility and near-term catalysts, prompting the shift in recommendation.

Wedbush reiterated its Outperform rating on Amazon.com (NASDAQ:AMZN) and maintained its $280 price target, highlighting the company's growing dominance in the digital advertising space.

Amazon is steadily gaining momentum with advertisers, thanks to its unmatched retail infrastructure, extensive customer data, and powerful merchandising tools. The firm noted that recent upgrades to Amazon’s Demand-Side Platform (DSP) have made it a more formidable competitor, particularly in comparison to key players like The Trade Desk.

Another key development is the ad-supported rollout of Prime Video, which has opened up a new stream of revenue. Over the past year, this move has successfully attracted advertising dollars—not only from other digital platforms but also from traditional linear TV budgets—thanks to Amazon’s reach, targeting precision, and wealth of first-party consumer data.

Wedbush believes these advancements solidify Amazon’s position as a top-tier player in digital advertising, with substantial room for further growth. The firm sees the advertising segment as a strategic engine of margin expansion and a core component of Amazon’s broader monetization strategy.

Amazon.com Inc (NASDAQ:AMZN) is a global e-commerce and technology giant, known for its vast online marketplace, cloud computing services, and digital streaming offerings. The company competes with other major players like Walmart in retail and Microsoft in cloud services. On March 3, 2025, Benchmark maintained its "Buy" grade for AMZN, with the action being "hold," and the stock price was $208.15.

Amazon's investment in the AI sector is noteworthy, as highlighted by CNBC. The company-backed AI firm, Anthropic, recently achieved a valuation of $61.5 billion after a $3.5 billion funding round. This round was led by Lightspeed Venture Partners and included investors like Salesforce Ventures and Cisco Investments. Anthropic's AI chatbot, Claude, launched in March 2023, is gaining traction in sales and customer service.

Amazon's Prime membership has reached a record 250 million subscribers globally, despite a $20 increase in annual fees in early 2024. This growth is driven by the value offered through Prime Video, faster shipping, and exclusive deals. The price hike had minimal impact on retention, showcasing strong customer loyalty.

Despite these positive developments, Amazon's stock experienced a slight decline, down 0.6% in early trading, priced at $211.08. The stock is currently trading at $207.85, reflecting a decrease of 2.09% with a $4.43 drop. The stock has fluctuated between $206.69 and $214.01 during the day, with a market cap of approximately $2.2 trillion.

Amazon's stock has seen a high of $242.52 and a low of $151.61 over the past year. The company's trading volume stands at 21.8 million shares. Despite the recent dip, Benchmark's "Buy" grade suggests confidence in Amazon's long-term growth potential, supported by its strategic investments and expanding Prime membership.

Cantor Fitzgerald analysts reiterated an Overweight rating on Amazon.com (NASDAQ:AMZN), maintaining a price target of $270 on the stock. The outlook highlights Amazon’s robust positioning among mega-cap names, with potential upside in key metrics for both the fourth quarter of 2024 and the first quarter of 2025.

Amazon Web Services (AWS) is expected to play a pivotal role in the company’s performance, benefiting from accelerated growth in inference workloads driven by advancements in the large language model (LLM) AI layer. With a competitive infrastructure stack and deep customer relationships, AWS is poised to capture a significant share of this growing market, bolstering its growth trajectory in the cloud computing space.

In the retail segment, Amazon is set to capitalize on fixed-cost leverage, which is anticipated to contribute to margin expansion throughout 2025. According to the analysts, this improvement is likely to persist even as the company faces incremental expenses related to the Kuiper satellite initiative, showcasing the resilience of its core operations. Despite investor sentiment already reflecting a favorable near-term outlook, Amazon offers multiple growth catalysts in the coming year.

On November 19, 2024, Daniel P. Huttenlocher, a director at Amazon (NASDAQ:AMZN), sold 1,237 shares of the company's Common Stock at $199.06 per share. This transaction leaves him with 24,912 shares. Amazon, a global e-commerce and technology leader, faces competition from companies like Walmart and Alibaba. Despite challenges, Amazon remains a dominant force in the market.

Amazon is currently facing hurdles in enhancing Alexa with advanced AI features. The company has experienced delays in launching the new AI-powered version due to integration complexities with partners like Uber and Ticketmaster. These challenges highlight the intricate nature of developing cutting-edge technology, which is crucial for maintaining Amazon's competitive edge.

Despite these challenges, Amazon has announced it will not increase its merchant fulfillment and referral fees in 2025. As highlighted by PYMNTS, this decision comes despite inflation and significant investments in employee pay and benefits. Amazon attributes this to cost reductions achieved through innovation, efficiency, and defect reduction, benefiting sellers on its platform.

In addition to its e-commerce operations, Amazon is involved in innovative projects like SENSICALMATCH.AI™, a collaboration with Common Sense Networks and Deloitte. This platform, powered by Amazon Web Services (AWS), aims to enhance safe advertising for children. This initiative underscores Amazon's commitment to leveraging technology for safety and innovation.

Amazon's stock price is currently $204.61, reflecting a 1.44% increase. The stock has traded between $198.80 and $205.30 today, with a market capitalization of approximately $2.15 trillion. Over the past year, the stock has seen a high of $215.90 and a low of $141.50, with a trading volume of 30,846,395 shares on the NASDAQ.

Amazon.com (NASDAQ:AMZN) reported third-quarter earnings that exceeded analyst expectations, pushing its stock up over 7% intra-day today. The tech giant's performance was boosted by growth in artificial intelligence, particularly within its cloud division.

Amazon posted adjusted earnings per share of $1.43, beating the forecasted $1.14, and reported revenue of $158.9 billion, surpassing estimates of $157.25 billion and marking an 11% year-over-year increase.

CEO Andy Jassy highlighted "once-in-a-lifetime" opportunities emerging from generative AI, which has spurred an uptick in cloud demand as businesses ramp up investment in the necessary infrastructure. Amazon Web Services (AWS) saw a substantial lift, with sales jumping 19% to $27.5 billion. Jassy noted that AI-driven operations within AWS were experiencing "triple-digit" growth.

The surge in AI demand, however, has led Amazon to significantly boost capital expenditures on data centers and networking, with $75 billion planned for this year and even higher spending expected in 2024.

Amazon’s AI-powered shopping assistant, Rufus, expanded to additional markets, while new AI tools were rolled out for sellers and advertisers, enhancing the company’s offerings as it heads into the holiday season. North American sales rose 9% to $95.5 billion, with international sales up 12% to $35.9 billion. Amazon's operating margin reached a record 11%, with AWS margins hitting an all-time high of 38%.

For the fourth quarter, Amazon projected revenue between $181.5 billion and $188.5 billion, just below the midpoint of Wall Street analysts' $186.36 billion estimate. The company forecasted Q4 operating income between $16.0 billion and $20.0 billion.