Amazon - AI Stock Analysis

Analysis generated January 25, 2026

Amazon, founded by Jeff Bezos in 1994, started as an online bookstore and has since evolved into one of the world's largest e-commerce and cloud computing companies. With a presence in various sectors such as retail, artificial intelligence, consumer electronics, and content creation, Amazon has diversified its portfolio significantly. The company's core business revolves around its e-commerce platform, Amazon Web Services (AWS), and a range of subscription services such as Amazon Prime. This diversified model positions Amazon as a strong player in multiple high-growth markets.

Fundamental Analysis

In the most recent quarter, Amazon's revenue reached $180 billion, marking a 7.43% increase from the previous quarter and a 13.40% jump year-over-year. These figures suggest robust growth both on a quarterly and annual basis. Meanwhile, net income for the last quarter was $21.2 billion, up by 16.64% from the previous quarter and 38.22% year-over-year, indicating efficient cost management and rising profitability.

The EBITDA for the last quarter stood at $45.5 billion, showing a 24.33% increase from the prior quarter and a 41.84% rise year-over-year. This significant growth in EBITDA underlines the company's strong operational performance. However, Amazon's current P/E ratio of 33.78 could be seen as relatively high, which may indicate overvaluation and poses a bearish outlook for some investors.

On the insider trading front, the recent sale of shares by company insiders may be perceived as a negative signal, suggesting potential concerns about future stock performance.

Technical Analysis

Amazon’s stock price currently stands at $239.16, up by 2.92% from a month ago, indicating a short-term positive trend. Compared to the same period last year, the stock price has increased by 1.84%, confirming a long-term upward trend. The trend appears to be bullish.

The current Simple Moving Average of 10 days (SMA10) is $237.06, which is marginally higher than the previous SMA10 of $236.96, suggesting a potential upward trajectory in the stock’s price movement. However, the Relative Strength Index (RSI) is at 41.4, indicating a neutral condition, giving no clear bullish or bearish signal.

Alternative Data Analysis

In terms of job postings, Amazon currently has 12,988 open positions, a stable number over the last few months, indicating a steady business position. Additionally, employee sentiment towards the company is reported as neutral.

On the customer acquisition front, Amazon's website drew an estimated 2.88 billion visitors, up by 13% over the past couple of months. This bullish trend indicates a potential increase in the customer base. Amazon also saw an average of 130,000 daily downloads of its mobile apps with no significant fluctuations, reflecting consistent user engagement.

In the realm of customer engagement, Amazon has 6.2 million followers on Instagram and 5.9 million followers on Twitter. While Instagram followers remained stable, Twitter followers decreased by 2% in the last couple of months, showing a slight decline in interest. According to AltIndex’s AI score, which predicts stock performance based on diverse data points, Amazon has a score of 60, suggesting a hold signal.

Conclusion and Recommendation

In summary, Amazon exhibits strong fundamental growth as evidenced by increases in revenue, net income, and EBITDA. Although its P/E ratio suggests potential overvaluation, other financial metrics portray a company in strong financial health. Technically, the stock’s bullish trend and stable SMA indicate potential for continued upward movement, complemented by a neutral RSI.

Alternative data provides a mixed but overall positive picture. Job postings are stable, customer acquisition is on the rise, but social media engagement is showing minor declines.

Based on these analyses, a recommendation for Amazon stock would be to hold. The strong financial metrics and potential for continued growth outweigh the concerns about overvaluation and insider selling. However, investors should remain cautious and monitor for any significant changes in these indicators.

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.