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Amazon AMZN

Amazon scores good on business quality (6.8 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$262.43Oct 9, 2026
Business qualityGood
Next earningsOct 29, 2026, after the close
Insiders, 90 daysQuiet

Why it matters

  1. What Amazon does

    Amazon makes money primarily through its dominant online retail marketplace and AWS cloud computing segment, charging fees, subscriptions, and commissions to consumers and enterprises alike. Massive capital investments in AI infrastructure and logistics capacity drive its next phase of expansion.

  2. What it does best

    Amazon dominates global e-commerce logistics through its unmatched fulfillment scale, posting a gross margin of 50.8% that easily outpaces discount rival Coupang at 28.4%. This dense infrastructure creates a hard-to-copy delivery network.

  3. The main risk

    Massive capital expenditure commitments pose the primary threat, with capex reaching $173.0B and driving free cash flow down to -$11.6B. If AI and data center investments fail to generate adequate returns, cash burn will accelerate.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margins stand at 12.1% while net margins reach 17.4%, though free cash flow margin lags in the bottom quartile at 5%. Heavy capital spending on infrastructure compresses near-term cash returns relative to scale.

MoatStrong

The AWS cloud ecosystem and Prime membership lock in enterprise developers and consumer shoppers alike, supported by a top-quartile return on equity of 30.5%. Rivals face billions in capital hurdles to replicate this infrastructure.

GrowthSteady

Revenue growth holds at 12.4% over the latest period, sitting in the top quartile of its sector at the 80th percentile. The pace is moderating slightly compared to historical surges as the massive revenue base expands.

Financial healthStrong

With interest coverage at 28.1x and cash sitting at $123.0B against total debt of $89.3B, the balance sheet remains robust. Free cash flow dropped to -$11.6B amid heavy spending, turning the cash trajectory softer for now.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on AMZN

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is AMZN a good business?

Amazon scores good on the Cluenex quality check (6.8 of 10), measured against its own industry. Profitability is weak, moat strong, growth steady and financial health strong.

Are insiders buying AMZN?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does AMZN report earnings?

Oct 29, 2026, after the close.

For members

See AMZN today

  • Today's verdict on AMZN, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Amazon (AMZN)”, https://cluenex.com/stocks/amzn/, data as of Oct 10, 2026.