Equity due-diligence report

AMZN

Version date
August 9, 2026
Generated
Aug 10, 2026, 02:34 UTC
Freshness
Aging · 11d

LiveMarket quote

AMZN$228.82−$1.14 (−0.50%)today$224.11$241.26day rangeretrieved Aug 20, 2026, 04:37 UTC

Market state at retrieval — independent of this report’s as-of research inputs recorded below.

Source data

5 inputs · freshness

  • companyfacts.json10 days oldas of Aug 10, 2026, 00:52 UTC
  • filings.json10 days oldas of Aug 10, 2026, 00:52 UTC
  • market.json10 days oldas of Aug 10, 2026, 00:52 UTC
  • history.json10 days oldas of Aug 10, 2026, 00:52 UTC
  • policy.json10 days oldas of Aug 10, 2026, 00:52 UTC

TL;DR

TL;DR

At $274.48 (settled close, 2026-08-07) — −3.4% off its $284.02 52-week high (2026-08-03), +23.0% above the level a year ago ($223.13 on 2025-08-07 — a real re-rating), and +21.1% above the pre-Q2-print close ($226.65 on 2026-07-29) — Amazon trades at a reconciled ~3.82× funded EV/TTM-revenue that looks cheap only until it is split by segment. The whole debate is one question: does the ~$200B/yr AI/AWS capex convert to free cash flow — now negative and getting deeper — while AWS holds the +36.8%/39.4% it just printed, before the market re-anchors AWS off its premium-to-peers cloud multiple, against a dated antitrust/DMA tail.

  • Bull. Revenue is re-accelerating (Q2 +19.6%, up from Q1's +16.6%) with both margins expanding (gross +44bps to 52.26%, operating +226bps to 13.69%) and operating income +43.2%; AWS reaccelerated to $42,232M, +36.8% ("fastest in 18 quarters") at a 39.4% segment margin that expanded (32.9%→37.7%→39.4%) — the opposite of Q1's YoY dip — and is ~61% of consolidated operating income on ~21% of revenue; Advertising is a $76,072M-TTM, +26% high-margin line the blend buries. You pay a market cloud multiple for the #1-share hyperscaler that just beat its guide — but the bull is explicitly quality/growth, not "cheap," because the SOTP is fair, not a bargain.
  • Bear. Concede all of that — the bear needs none of it to be false. The buildout consumes all the cash and then some: Q2 capex $54,208M exceeded operating cash flow $45,387M, so Q2 FCF was −$8,821M (a second consecutive negative quarter) and TTM FCF is −$11,625M (gross) / −$7.6B (Amazon-net) — deeper than a quarter ago; D&A $75,200M is only 43.5% of gross capex, so less than half the spend has hit the P&L. Funded debt roughly doubled to $133,320M and Amazon is now −$10,332M funded net debt (−$120,103M lease-inclusive with $109,771M of leases); capital return is $0 buyback, $0 dividend — no floor. Two-thirds of Q2 pre-tax income is the $53.4 billion non-operating Anthropic mark (NI exceeds OI by $35,186M after tax), not operations.
  • Priced-in break-even. At the funded EV, marking the $627,276M non-AWS business at Walmart's 1.32× implies AWS is already priced at ~14.4× revenueabove MSFT (11.34×) and GOOGL (9.45×). To justify that at a peer multiple, AWS forward revenue must reach $188.3B–$225.9B (≈+27% to +52%) off the $148,404M TTM base — the just-printed +36.8% clears the MSFT threshold but not GOOGL's, so on next-twelve-month revenue the AWS EV is 10.5× — a peer NTM multiple, no margin of safety. The multiple is "paid for" iff AWS holds ≈+27–37% growth at a held ~39% margin and capex/revenue normalizes below 20.8% so trailing FCF re-turns positive — against the uncompensated EU-DMA / FTC-antitrust tail. If any leg fails the downside band is −17.6% to −38.1% (bear SOTP). No buy/sell/hold — research tooling, not advice.

Watch next — a cold reader can act on these:

WindowEventIf it lands bullishIf it lands bearish
~late Oct 2026 (est. 2026-10-22, Wall Street Horizon, confirmed / ~2026-10-29 MarketChameleon, unconfirmed; accessed 2026-08-09; Amazon IR not yet posted; cadence from the 2025-10-30 Q3'25 print)Q3 FY2026 earnings print — the load-bearing forward catalyst (the Q2 print resolved 2026-07-30, +15.3%)Net sales at/above the $197–202B guide; AWS growth ~mid-30s% with margin ~39%; OI at/above the $22.5B low end; capex "digesting" so TTM FCF troughs toward positiveRevenue/OI at the low end or a miss; AWS decel or margin rollover as depreciation lands; capex guide raised past the ~$173B TTM run-rate with TTM FCF still negative; the $53.4B Anthropic non-op gain does not recur
~Feb 2027 (Q4 FY2026 print)Trailing-FCF conversion — definitive read on capex/revenue vs the 20.8% break-evenTTM FCF re-turns positive as capex/revenue normalizes below 20.8% — the "capex converts to ROIC" thesis is confirmedTTM FCF stays negative with the ~$200B FY2026 capex figure held/raised — the spend is not converting; no capital-return cushion underneath
Final decision ~late Oct 2026 (written reps due Sept 2026; preliminary 2026-06-25; EC IP/26/1444, The Register, accessed 2026-08-09)EU DMA — AWS cloud-gatekeeper designation (first cloud designation; fines to 10% of global turnover)AWS declined/narrowed, or obligations prove immaterial to AWS economicsAWS itself designated → interoperability / anti-lock-in duties on the segment that is ~61% of operating income
Bench trial 2027-03-29 (pretrial 2027-03-15; MLex/Law360, accessed 2026-08-09)FTC v. Amazon marketplace-monopoly antitrust trial (FTC + 18 state AGs + PR, Judge Chun, W.D. Wash.)A defense verdict or conduct-only remedy leaves marketplace/advertising/AWS economics intact — the tail is removedA liability finding → structural remedy on the retail/ads economics the SOTP marks at Walmart parity — the −38.1% (Bear-3) case

What the numbers sayLocked

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Bull caseLocked

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Bear caseLocked

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Cross-examination ledgerLocked

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Is it priced in?Locked

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Catalyst calendarLocked

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Sources appendixLocked

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