Rankings Software, cloud & internet Amazon
Amazon
86
15070100
A view of the same findings, not a new score. How it works
In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.
Biggest deductions
- AI capex, cash flow and debt−5
- Absolute price level and earnings quality−4
- Regulation and litigation−4
Strengths
- AWS acceleration and backlog+3
- Margin expansion and pricing power+2
- Insider ownership+1
How the score is built
From 100 to 86, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 245.63 USD
- Median analyst target
- 330.00 USD
- Upside to median
- +34.3%
- Analysts
- 60
- Target range
- 230.00 – 405.00 USD
- 52-week change
- +1%
- P/E (trailing)
- 19.9
- Forward P/E
- 24.8
- PEG
- 1.06
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−6 of −30
- −3ROICROIC has fallen from 19.2% (2024) and 15.9% (2025) to 11.9% TTM, because the capital base is growing faster than operating profit during the AI build-out; asset turnover has fallen from 1.16 to 0.87.
- −2DilutionThe share count keeps rising (+0.9% over a year, 1–3% annually since 2023) via share-based pay; there is no buyback or dividend to counteract it.
- −1Quality of growthOnline Stores ($285bn, 37% of revenue) grows only 6–9% a year and has a low margin; growth and earnings are carried by AWS and advertising.
Price
Today's multiples against the company's own history and its peers. · 3 findings−7 of −35
- −1Multiples vs own historyForward P/E 27.3 vs 31–85 in 2021–2025 and EV/EBITDA 17.1 vs 17.4–29.5 – at the bottom of its own history, but the history is itself high; P/B 5.0.
- −2PeersForward P/E 27.3 vs Microsoft 26.8, Alphabet 25.9 and Walmart 35.7; EV/EBITDA 17.1 vs 20.5–23.9 for Microsoft and Alphabet. No clear discount.
- −4Absolute price level and earnings qualityFCF yield -0.4% (FCF -$11.6bn TTM), no dividend; trailing P/E 20.6 is artificially low, since the net result ($135bn) exceeds operating profit ($94bn) due to investment gains.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−11 of −35
- −5AI capex, cash flow and debtCapex guidance for 2026 raised from $200bn to $220bn; FCF is negative TTM, gross debt has risen from $179bn to $252bn in half a year (incl. bonds of $25bn), and net debt is $129bn vs $56bn at year-end.
- −4Regulation and litigationOn 31/8 the FTC and 22 states sued Amazon for manipulating ad auctions and overcharging 1.2 m advertisers by over 20 bn $; at the same time the FTC's monopoly case on online retail is approaching trial.
- −2Customer concentration in AIA large part of the AWS order book hangs on a few AI labs: Anthropic has committed to over $100bn in AWS spending over 10 years against up to $25bn in investment from Amazon – a circular deal.
Plus
Only documented strengths. · 3 findings+6 of +15
- +3AWS acceleration and backlogAWS revenue +37% to $42.2bn in Q2 (fastest growth in 18 quarters), segment margin 39.4% vs 32.9%, and the backlog is $496bn with triple-digit growth.
- +2Margin expansion and pricing powerOperating margin has risen from 2.6% (2022) to 12.1% TTM and gross margin from 42% to 50.8%, driven by high-margin advertising (US$76bn TTM, +22% in 2025) and 3P seller fees.
- +1Insider ownershipInsiders (primarily Jeff Bezos) own 8.9% of the company – high for a company worth $2.8tn.
Caveats
What the score does not capture, or where the data is weak.
Reported net income TTM (135bn $) is inflated by non-operating gains (incl. a revaluation of the Anthropic stake), so trailing P/E 20.6 is too low; analysts' EPS for 2026 is 8.31 $ vs 12.44 $ reported TTM. Retail, subscriptions, advertising and AWS are grouped under one industry. The Nordnet line showed a price of 0, so the price is from stockanalysis.
Also in Software, cloud & internet
The highest scores in the same industry.
