Key statistics

Is AMZN a good stock to buy in 2026?

AMZN stock exhibits a P/E ratio of 31.12x, which is slightly below the Specialty Retail sector average of 33.6x, hinting at a potentially fair relative valuation. However, its discounted cash flow (DCF) valuation of $139.08 suggests a significant overvaluation of -47.1% compared to its current price. Despite this intrinsic valuation concern, 88.3% of analysts maintain a “Buy” rating for AMZN, indicating strong professional confidence in its future performance.

2026 AMZN price scenarios

Based on analyst consensus of $290.48 from 94 analysts. Not a prediction by Alert Invest.

About Amazon.com, Inc. (AMZN)

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS).

Amazon.com, Inc. is led by CEO Andrew R. Jassy, who assumed the role in July 2021, succeeding founder Jeff Bezos. With approximately 1,560,000 employees globally, Amazon’s distinctive strengths lie in its unparalleled e-commerce ecosystem, its dominant cloud computing platform (Amazon Web Services), and its relentless focus on customer experience and innovation. These pillars have allowed AMZN stock to sustain remarkable growth and market leadership, driving a strong competitive advantage.

AMZN competitive moat and business analysis

Amazon’s competitive advantage stems from its vast scale, intricate logistics network, and diversified revenue streams. Its net margin stands at a healthy 12.22%, reflecting efficient operations across its segments. While specific Return on Equity (ROE) data is not available (N/A), the company’s robust Return on Invested Capital (ROIC), also reported as N/A in the provided data, is typically indicative of its capital efficiency and ability to generate value. This operational excellence supports the long-term potential of AMZN stock.

Amazon’s revenue is primarily segmented into North America, International, and Amazon Web Services (AWS) as of the fiscal year 2025. While detailed financial breakdowns for these segments are not provided in the data, it’s widely understood that AWS represents a high-margin, rapidly growing component, while North America and International retail operations leverage Amazon’s vast infrastructure and customer base. Geographically, its operations span North America and internationally, showcasing a broad global reach that fuels AMZN’s market dominance.

The competitive moat of AMZN stock appears strong, supported by its impressive year-over-year revenue growth of 12.4%. CEO Andrew Jassy, in the Q4 2025 earnings call on February 5, 2026, emphasized the company’s continued focus on innovation and customer value. Dave Fildes, VP of Investor Relations, further highlighted how “our comments and responses to your questions reflect management’s views as of today, February 5, 2026, only and will include forward-looking statements.” This suggests an ongoing commitment to strategic investments that strengthen its market position and potential for future growth.

When evaluating AMZN stock, it’s crucial to compare its performance against key competitors. Alibaba (BABA) presents a similar e-commerce and cloud giant, primarily focused on the Asian market. Casey’s General Stores (CASY) offers a different retail perspective, though less directly comparable in scale and diversification. Etsy (ETSY) represents a niche e-commerce platform with a distinct business model. For a detailed side-by-side analysis of AMZN valuation, growth, and analyst ratings against these peers, investors can explore comparisons such as AMZN vs BABA, AMZN vs CASY, and AMZN vs ETSY.

Amazon.com, Inc. analyst rating

Based on 94 analysts. 88.3% rate AMZN Buy or Strong Buy.

An 88.3% “Buy” rating from 94 analysts is an exceptionally strong consensus for a company within the Consumer Cyclical sector, particularly for a stock with AMZN’s scale and influence. This high level of conviction indicates that a significant majority of professional analysts believe AMZN stock is poised for continued outperformance over the next 12 months.

Is AMZN undervalued or overvalued?

Assessing the AMZN valuation, the stock currently trades at a P/E ratio of 31.12x, which is a modest discount compared to the Specialty Retail sector average of 33.6x. This suggests that relative to its industry peers, AMZN stock might be considered reasonably priced on an earnings multiple basis. However, a deeper dive into intrinsic value tells a different story.

The discounted cash flow (DCF) model calculates a fair value of $139.08 for AMZN, indicating a significant overvaluation of -47.1% against its current trading price. This substantial difference implies that, from a fundamental, cash-flow-based perspective, the stock is trading well above its intrinsic worth. Value investors often scrutinize such discrepancies when evaluating whether AMZN is a good stock to add to their portfolios.

AMZN financial health & key metrics

For value investors assessing AMZN stock, the financial metrics present a mixed picture. While the P/E ratio of 31.12x is slightly below the sector average of 33.6x, suggesting a potentially fair market multiple relative to peers, the discounted cash flow (DCF) fair value of $139.08 indicates a substantial overvaluation of -47.1% against its current price. Furthermore, a negative Free Cash Flow (FCF) yield of -0.09% raises concerns about its immediate cash generation capabilities, a critical factor for value-oriented portfolios. Despite strong net margins of 12.22% and robust revenue growth of 12.4%, the high P/B ratio of 6.39x and the significant disparity between its market price and intrinsic value calculated by DCF models would likely deter strict value investors looking for deep discounts, impacting the overall AMZN valuation perception.

Amazon.com, Inc. earnings history & next report

Amazon.com, Inc. reported EPS of $2.78, beating estimates by 70.55%. Next earnings: 2026-07-30 with EPS estimate of $1.76.

At the upcoming earnings report on 2026-07-30, investors should closely monitor several key areas for AMZN stock. The estimated EPS of $1.76 will be a critical benchmark, especially following the previous beat by 70.55%. Beyond the headline numbers, attention should be paid to the growth trajectory of Amazon Web Services (AWS), which is a high-margin segment vital for overall profitability. Commentary on consumer spending trends in both North America and international retail, along with any updates on operational efficiency and cost management initiatives, will also be crucial in understanding Amazon’s near-term performance and future outlook. These factors will heavily influence the perception of AMZN’s ongoing AMZN valuation and whether it remains a good stock in the current economic climate.

AMZN daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

AMZN insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent AMZN analyst rating changes

Amazon.com, Inc. stock news today

How does AMZN compare to its peers?

Understanding how Amazon.com, Inc. (AMZN) stacks up against its industry counterparts is essential for a comprehensive investment perspective. While Amazon’s diversified business model makes direct comparisons challenging, examining similar companies in the Consumer Cyclical sector can shed light on relative strengths and weaknesses, especially concerning AMZN valuation and growth prospects.

FAQ — Amazon.com, Inc. (AMZN) stock