Shmoney AI – AI Financial Analyst
Financials Analysis
Income Statement
Amazon (AMZN) has demonstrated a strong recovery in its financial performance over the past three years. The company has shown significant growth in revenue and profitability, with total revenue increasing from $511.3 billion in 2022 to $637.6 billion in 2024, and net income improving from a loss of $2.7 billion in 2022 to a profit of $59.2 billion in 2024. This indicates a robust upward trend in profitability. Liquidity appears stable, with consistent gross profit margins and manageable operating expenses. Solvency is supported by the company’s ability to generate substantial operating income and positive net interest income in recent periods. Overall, Amazon’s financial health is strong, with clear signs of growth and stability.
Balance Sheet
Amazon (AMZN) has shown a strong financial performance over the past years. The company’s total assets have grown significantly, from $462.7 billion in 2022 to $624.9 billion in 2024, indicating robust growth and expansion. Total liabilities have also increased, but at a slower pace compared to assets, which is a positive sign for financial stability. Shareholder equity has more than doubled from $146 billion in 2022 to $285.9 billion in 2024, reflecting strong retained earnings and a solid equity base.
In terms of liquidity, Amazon maintains a healthy level of current assets relative to current liabilities, with a current ratio consistently above 1. This indicates that the company is well-positioned to meet its short-term obligations. Cash and short-term investments have also increased, providing a strong liquidity buffer.
Regarding solvency, the company’s long-term debt has remained relatively stable, and the debt-to-equity ratio has improved over the years, showcasing a balanced approach to leveraging and equity financing. Retained earnings have grown significantly, which is a testament to the company’s profitability and reinvestment strategy.
Overall, Amazon demonstrates excellent financial health, with strong growth in assets and equity, robust liquidity, and prudent management of liabilities and debt.
Cash Flow Data
Amazon (AMZN) has shown a strong recovery in its financial health over the past three years. The company has significantly improved its profitability, with net income rising from a loss of $2.72 billion in 2022 to a profit of $59.25 billion in 2024. Operating cash flow has also increased substantially, from $46.75 billion in 2022 to $115.88 billion in 2024, indicating robust operational efficiency. Capital expenditures have been high, reflecting ongoing investments in growth, but these are well-supported by the company’s cash flow. Liquidity appears strong, with consistent positive operating cash flow and manageable financing activities. Solvency is also solid, as the company has not relied heavily on debt issuance in recent years. Overall, Amazon demonstrates excellent financial stability and growth potential.
Sentiment Analysis
News Sources 1
The sentiment for Amazon (AMZN) appears cautiously optimistic based on the analysis. The stock is projected to have a potential upside in the short term, with a consensus one-year price target of $268.91, representing an 18.65% increase from the current price. Long-term forecasts are even more positive, with a 2030 price target of $430.50, assuming consistent revenue growth and strategic advancements in its key business areas such as AWS, e-commerce, and advertising. However, challenges such as increased competition in the cloud services sector and potential margin compression are noted as risks. Overall, the sentiment reflects confidence in Amazon’s ability to grow and adapt, albeit with some caution due to competitive pressures.
News Sources 2
Amazon (AMZN) is highlighted as a top stock pick by Bourgeon Capital, which specializes in actively managed portfolios. The firm considers AMZN a strong long-term investment in the technology sector, ranking it 5th among its recommended stocks. This positive sentiment is supported by Amazon’s strong financial performance, including a significant year-over-year revenue increase and exceeding earnings expectations. However, some concerns, such as ongoing investigations into tax compliance, may pose risks.
News Sources 3
The sentiment for AMZN on News Sources 3 is generally positive, with a focus on its strong market position and growth potential. Articles highlight its innovative strategies and expansion into new markets, which are seen as positive indicators for its future performance. However, some concerns about competition and market challenges are also noted.
Human Analyst Ratings
The analyst recommendations for AMZN show a consistently strong positive sentiment over the analyzed periods. The number of ‘buy’ and ‘strong buy’ recommendations significantly outweighs the ‘hold’ and ‘sell’ recommendations, with no ‘sell’ or ‘strong sell’ ratings reported. This indicates a robust confidence in the stock’s performance among analysts.
Industry Analysis
The retail industry in the USA is currently navigating a complex landscape characterized by both challenges and opportunities. Key indicators show a steady growth in retail sales, with a projected increase in e-commerce penetration and a focus on omnichannel strategies. However, the industry faces significant challenges such as rising operational costs, supply chain disruptions, and evolving consumer preferences. Strengths include the adoption of advanced technologies like AI for personalization and efficiency, as well as the resilience of brick-and-mortar stores in providing unique customer experiences. The industry’s ability to adapt to these dynamics will be crucial for sustained growth.
Economic Report
Real GDP Analysis
The Real GDP data for the USA shows a consistent upward trend over the years, with some fluctuations during periods of economic downturns, such as the 2008 financial crisis and the 2020 pandemic. The recent data indicates a strong recovery and growth, with the GDP reaching new highs in 2024. This suggests a robust economic performance and resilience in the face of challenges.
Federal Funds (Interest) Rate Analysis
The Federal Funds Rate data indicates a significant increase in interest rates starting from 2022, following a prolonged period of near-zero rates from 2020 to 2021. This trend reflects a shift in monetary policy likely aimed at addressing inflationary pressures. The rate peaked at 5.33% in 2023 and remained stable for several months before gradually declining in late 2024 and early 2025. This pattern suggests a response to changing economic conditions, possibly indicating a stabilization or cooling of inflationary trends.
CPI Analysis
The Consumer Price Index (CPI) for all Urban Consumers has shown a consistent upward trend over the years, indicating a steady increase in the general price level of goods and services. From January 2021 to January 2025, the index rose from 261.582 to 317.671, reflecting inflationary pressures in the economy. The monthly data also reveals seasonal fluctuations, but the overall trajectory is upward. This trend aligns with economic conditions such as supply chain disruptions, monetary policy adjustments, and demand-side factors influencing prices.
Unemployment Rate Analysis
The unemployment rate in the USA has shown a general trend of recovery and stability over the past years. After peaking at 14.8% in April 2020 due to the economic impact of the COVID-19 pandemic, the rate has steadily decreased, reaching levels around 3.5% to 4.0% in recent months. This indicates a strong recovery in the labor market. However, the slight increase in the unemployment rate from 3.5% in mid-2023 to 4.0% in early 2025 suggests a potential cooling of the labor market, which could be due to various economic factors such as monetary policy adjustments or changes in economic growth rates.
Treasury Yield Analysis
The 2-Year Treasury Constant Maturity Rate has shown significant fluctuations over the observed period. Starting from a lower rate in early 2023, the yield increased steadily, peaking around mid-2023, and then exhibited a slight decline towards early 2025. This trend reflects the market’s response to economic conditions, including inflation expectations and Federal Reserve policy adjustments. The data indicates a period of tightening monetary policy, as evidenced by the rising yields, followed by stabilization as the rates plateaued and slightly decreased.
Technical Analysis
SMA Analysis
The stock’s 200-day Simple Moving Average (SMA) has been steadily increasing over the past months, indicating a consistent upward trend in the stock’s price. This suggests positive momentum and potential for continued growth, assuming no significant market disruptions. The gradual increase in the SMA reflects sustained buying interest and a bullish sentiment among investors.
EMA Analysis
The stock’s 200-day EMA has been steadily increasing over the past months, indicating a consistent upward trend in its long-term price movement. This suggests positive momentum and potential for continued growth, assuming no significant external disruptions. The gradual increase in the EMA values reflects a stable and sustained bullish sentiment in the market.
STOCH Analysis
The stochastic oscillator (STOCH) for the stock indicates a recent upward momentum, with the SlowK value rising from oversold levels and crossing above the SlowD. This suggests a potential bullish reversal in the stock’s price movement. However, the current SlowK value of 41.29 is still below the overbought threshold, indicating that the stock may have room to grow before reaching overbought conditions. This momentum shift could signal a buying opportunity, but caution is advised as the trend needs confirmation.
RSI Analysis
The RSI for the stock has been fluctuating around the mid-range of 50, with recent values slightly below this level. This indicates that the stock is neither overbought nor oversold, suggesting a neutral momentum. However, the slight downward trend in the RSI over the past few days could indicate a weakening momentum, which might lead to a potential price decline if the trend continues. Monitoring the RSI for further movement below 40 or above 60 could provide clearer signals for potential price action.
