Amazon.com Inc AMZN

The bottom line

What moves this stock now is cloud and AI: how much Amazon commits to power and data center infrastructure, and how fast that turns into revenue. Our data shows 19.6% revenue growth and $62.6B quarterly net income, but free cash flow of negative $8.8B, meaning heavy spending is still consuming cash. The PE of 19.95 sits below the peer median of 25.7, with valuation flagged inline and the average analyst target at $331.72 versus a $248 close. The tension: committing to long-dated power deals and capacity while one planned $427M site was cancelled and AI cloud capacity is reportedly rationed.

An explanation of the mechanics from the facts on this page, not advice.

What the company does

Amazon.com Inc is a mega-cap company in the Consumer Cyclical sector (Internet Retail), with a market value of $2.68T, based in the USA.

It employs about 1,595,000 people and has been listed since May 15, 1997.

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

Cheap or expensive? priced in line with its group

Its price-to-earnings (P/E) is 20.0 versus 25.7 for 4 direct peers — priced in line with its group.

Revenue is growing 20% versus the same quarter last year.

On analysts' next-year forecasts the multiple rises to 24.2 — they expect lower earnings.

The average analyst price target is 331.72, 34% above the current price (their view, not ours).

The stock sits at 57% of its one-year range (0% = the low, 100% = the high).

The risks

• • More cash leaves than comes in (negative free cash flow).
• • Quarterly report in 4 days (2026-10-29) — a day the stock can move a lot.

Strengths

• ✅ Profitable — 31 of every 100 dollars of revenue stays as profit.
• ✅ Most analysts rate it buy (58 vs 0).
• ✅ Revenue is growing 20% a year.

What the market is talking about this week

Amazon expands long-term power commitments for AI while cancelling one data center site, days before its quarterly report.

• Amazon dropped a $427 million data center complex in Loudoun County, Virginia after sustained local opposition, redirecting part of the budget to community investments. [2] [3]
• Amazon joined American Electric Power and X-energy on a 960-megawatt advanced nuclear project in Indiana, with funding and a long-term power purchase arrangement. [1]
• Anthropic said cloud capacity for AI workloads is being rationed across large providers, including AWS, due to supply constraints. [2]
• Amazon security teams are responding to the global PHP2Shell vulnerability, which targets PHP-based web servers and large-scale hosting environments. [2]
• Per Seeking Alpha, Amazon is expected to report next week EPS of $1.96 on revenue of $202.20 billion. [6]

A summary of the articles below only, each point with its source. Not a forecast, not a recommendation.

What to watch

• The quarterly report on October 29, 2026, showing whether revenue meets the roughly $202.20B expectation and what happens to the negative free cash flow. (2026-10-29) [6]
• Whether the Indiana nuclear project advances to a final investment decision, which determines if Amazon's power arrangement becomes an actual commitment. [1]
• Whether AI cloud capacity rationing at AWS continues, since supply constraints can affect the pace of cloud revenue growth. [2]
• Whether the Loudoun cancellation is a one-off or the start of a shift in Amazon's data center build plans. [2] [3]

What changed this week

Over the past week the stock fell 0.8% (for comparison: S&P 500 -0.4%, sector ETF XLY +0.6%).

This week's news

• What Does American Electric Power Company (AEP) Gain From Its 960 MW Nuclear Plan? finance.yahoo.com · 2026-10-25
  American Electric Power signed a joint development deal with X-energy and Amazon for a 960 MW advanced nuclear facility in Indiana on a former coal site; Amazon would fund it and buy power long term. source ↗
• Amazon.com (AMZN) Cancels $427 Million Loudoun County Data Center Project finance.yahoo.com · 2026-10-24
  Amazon cancelled a $427 million Loudoun County data center complex after local opposition; separately, AI cloud capacity rationing at AWS was reported and security teams are handling the PHP2Shell flaw. source ↗
• AI bear slams Nvidia's GPU pitch: 'There's not scarcity other than that which is created by Jensen Huang' finance.yahoo.com · 2026-10-24
  Critic Ed Zitron argued in an interview that Nvidia manufactures GPU scarcity, citing Amazon's cancelled Loudoun data center as an example of questions over the data center build-out. source ↗
• Earnings Scoreboard: 82% firms beat EPS estimates, 79% post Y/Y earnings growth seekingalpha.com · 2026-10-24
  Earnings roundup: of 76 S&P 500 companies reporting this week, 82% beat EPS estimates and 63% beat revenue estimates; Amazon was not among this week's reporters. source ↗
• Jeff Bezos Says ‘Some Politicians Are Governing Correctly,’ Points To Austin, Texas, Where Housing Prices Are Going Down — It's Not 'Greedy Landlords' finance.yahoo.com · 2026-10-24
  Amazon founder Jeff Bezos told Fox News that housing prices are a supply-and-demand matter, pointing to Austin as a city that eased building and saw prices fall. source ↗
• Consumer Discretionary Earnings: EPS beats outpace revenue seekingalpha.com · 2026-10-24
  A consumer discretionary review notes more companies beat on EPS than on revenue, and that Amazon is expected to report next week EPS of $1.96 on revenue of $202.20 billion. source ↗

What changed since last week

No material change: same valuation verdict, same risk flags, price moved less than 3%.