Amazon.com Inc.

AMZN | NASDAQ

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$253.71

+$2.52 (+1.00%)

At close: Sep 18, 2026, 4:00 PM ET

$255.31

+$1.60 (+0.63%)

Pre-market: Sep 21, 2026, 8:10 AM ET

Overview Rating Statistics Financials Earnings Analysts Ownership Profile

Rating

Updated: Sep 17, 2026

63.8

Fundamentals Strong

Market Sentiment Neutral

Moat Wide

Fundamentals

57/85

valuation

Undervalued 19/25

growth

High 15/20

quality

Average 15/25

health

Stable 8/15

Rating Strong

Sentiment

6.8/15

6.8

Neutral

RSI: 41.4

Market sentiment is neutral-to-cautious with soft momentum consolidation. The stock is digesting cost-focused headlines around the $1 U.S. wage increase against more optimistic narratives on advertising share gains and a growth re-acceleration. Smart-money positioning is defensive, with super-investors trimming broadly and congressional activity skewing toward sales, while insider activity reflects routine compensation-related selling rather than conviction departures. Overall, fundamentals remain respected but near-term flow and news create a wait-and-see overhang.

Moat

Wide

Network Effects Low Cost Producer Switching Costs

Amazon commands a Wide moat anchored in a self-reinforcing flywheel. Network Effects drive Third-Party Seller Services at $183.7B (24%) and Subscription Services at $52.9B (7%): more sellers expand selection, attracting more Prime members, which in turn attracts more sellers and advertisers. Low Cost Producer scale in Online Stores at $285.1B (37%) plus a $453.7B North America fulfillment and logistics network creates a unit-cost advantage no rival can match without duplicate infrastructure. Switching Costs lock in both Prime households and AWS at $148.4B (19%), the core profit engine, where mission-critical workloads, data gravity, and developer tooling make migration prohibitive. This is fortified by a $121.1B R&D budget plus $58.9B in SG&A and $48.0B in sales and marketing that funds logistics automation, custom silicon, and AI. ROIC of 8.48% is depressed by relentless reinvestment, but 50.77% gross margin and 12.08% operating margin validate durable pricing power and mix shift toward cloud and advertising.

Bull Case

• AWS at $148.4B (19%) as high-margin compounder levered to enterprise cloud migration and AI workloads, providing operating leverage to offset low-margin retail.
• High-margin flywheel from Advertising Services at $76.1B (10%) plus Third-Party Seller Services at $183.7B (24%) and Subscription Services at $52.9B (7%), driving mix shift and margin expansion.
• Valuation disconnect with Operating Income-based intrinsic value of $276.19 versus $245.96 current price and $330.27 consensus target, supported by 113.91% 3-year EPS growth and 0.22 PEG indicating growth at a reasonable multiple.

Bear Case

• Extreme capital intensity with capex at 107.2% of operating cash flow, negative -1.5% free cash flow margin and sharp 3-year free cash flow contraction, creating depreciation drag and dependence on flawless execution.
• Concentration in low-margin Online Stores at $285.1B (37%) and North America at $453.7B (58%), exposing results to consumer cyclicality, wage inflation highlighted by the $2,080 annualized commitment headline, and shipping cost pressure.
• Cautious smart-money flow with 28 super-investor reduces versus 18 adds and bearish congressional activity, pressuring near-term momentum reflected in soft RSI.

Final Verdict

With a 63.8/100 total score reflecting strong fundamentals offset by neutral sentiment, Amazon pairs a wide-moat, multi-engine platform led by AWS, advertising, and marketplace services with persistent reinvestment drag and cautious institutional flows. Durable network, scale, and switching-cost advantages and long-term operating leverage are balanced against heavy capex intensity, retail margin sensitivity, and near-term distribution pressure, favoring a constructive long-term profile contingent on cloud reacceleration and capex payoff.