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Amazon - AI Stock Analysis
Analysis generated October 18, 2025
Amazon.com, Inc. (NASDAQ: AMZN) is a global leader in e-commerce, cloud computing, digital streaming, and artificial intelligence. Founded by Jeff Bezos in 1994, Amazon has grown to become one of the world's most valuable companies. It operates through three segments: North America, International, and Amazon Web Services (AWS). notable products and services include AWS, Amazon Prime, Kindle e-readers, and Echo devices. The company’s mission is to be "Earth's most customer-centric company," and it has consistently innovated in logistics, cloud computing, and digital services.
Fundamental Analysis
For the latest quarter, Amazon reported a revenue of $168 billion, marking a 7.73% increase compared to the previous quarter. Year-over-year revenue saw a 13.33% growth, signaling a strong upward trend. Net income for the quarter stood at $18.2 billion, which is a 6.05% increase from the previous quarter and a substantial 34.70% increase from the same quarter last year. This illustrates Amazon's efficiency in converting revenues into profits.
EBITDA was reported at $36.6 billion, a slight increase of 0.32% from the previous quarter and a significant 36.53% increase year-over-year. These numbers show that Amazon is not only growing its revenue but also managing its operating expenses effectively. However, the current Price-to-Earnings (P/E) ratio stands at 32.74, a high value that might indicate overvaluation. In recent months, company insiders have sold their stock, which could be a bearish signal.
Technical Analysis
Amazon's current stock price is $213.04, a decrease of 7.87% compared to a month ago, which could be a short-term concern. However, the stock has enjoyed a 12.73% increase over the past year, indicating a positive long-term trend. The trend appears bearish in the short term, as suggested by the SMA10, which stands at 216.94 – lower than the previous SMA10 of 218.16. The Relative Strength Index (RSI) is at 64.2, indicating a neutral condition.
Alternative Data Analysis
Job postings at Amazon currently stand at 12,619, a significant 52% drop over the last couple of months. This might reflect the company's move to improve its margins by cutting costs. Employee sentiment about the business outlook remains neutral, adding another layer of caution.
Customer acquisition data shows an estimated 2.54 billion visitors to Amazon’s webpage, with stable metrics over the last few months. The daily mobile app downloads have increased by 8%, suggesting a bullish trend in customer acquisition. Furthermore, Amazon's Instagram followers have increased by 4% to 6.1 million, indicating growing interest in the company. Its Twitter followers remain steady at 6 million.
Finally, AltIndex’s AI score for Amazon stands at 43, suggesting a 'hold' signal, based on a blend of fundamental, technical, and alternative data.
Conclusion
Amazon remains a robust player in the tech and e-commerce sectors, exhibiting strong revenue and net income growth year-over-year. While the company faces short-term bearish signals from technical analysis and insider sales, its long-term growth prospects appear promising, evidenced by strong customer acquisition and engagement rates. Given these mixed signals and the neutral AI score, a prudent recommendation for investors would be to hold their positions and closely monitor upcoming financial and market developments.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
