Amazon.com, Inc. Website

Amazon.com, Inc.

NasdaqGS-AMZN

Company Overview

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). Its products offered through its stores include merchandise and content purchased for resale; and products offered by third-party sellers The company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, Blink, eero, and Echo; and develops and produces media content. In addition, it offers programs that enable sellers to sell their products in its stores; and programs that allow authors, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, the company provides compute, storage, database, analytics, machine learning, and other services, as well as fulfillment, advertising, and digital content subscriptions. Additionally, it offers Amazon Prime, a membership program. The company serves consumers, sellers, developers, enterprises, content creators, and advertisers. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.

  • Name

    Amazon.com, Inc.

  • CEO

    Andrew R. Jassy

  • Website

    www.amazon.com

  • Sector

    Broadline Retail

  • Year Founded

    1994

Company Statistics

Profile

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Bulls Say

  • Amazon is the clear leader in e-commerce and enjoys unrivaled scale to continue to invest in growth opportunities and drive the very best customer experience.

  • High-margin advertising and AWS are growing faster than the corporate average, which should continue to boost profitability over the next several years.

  • Amazon Prime memberships help attract and retain customers who spend more with Amazon; this reinforces a powerful network effect while bringing in recurring and high-margin revenue.

Bears Say

  • Regulatory concerns are rising for large technology firms, including Amazon. Further, the firm may face increasing regulatory and compliance issues as it expands internationally.

  • New investments, notably in fulfillment, delivery, and AWS, should damp free cash flow growth. Also, Amazon’s penetration into some countries might be harder than in the US due to inferior logistic networks.

  • Amazon may not be as successful in penetrating new retail categories, such as luxury goods, due to consumer preferences and an improved e-commerce experience from larger retailers.

Source: Morningstar Analysis - Oct 31, 2025

What's happening

Nov 5, 2025 - Dec 5, 2025

Amazon.com Inc Faces Significant Challenges Amid Regulatory Scrutiny and Internal Restructuring

  • CEO Andy Jassy's share sales raised investor concerns during a month of layoffs affecting 40% of engineering roles.
  • An investigation by the European Commission into compliance issues added pressure on Amazon's stock performance.
  • Despite strong quarterly earnings from AWS, ongoing operational challenges led to downgrades in analyst sentiment.

Over the past month, Amazon.com Inc (AMZN) experienced a decline of 6.8%, significantly underperforming the S&P 500, which returned 1.3%. This resulted in an underperformance of -8.1% relative to the S&P 500 and mirrored its struggles within the Consumer Discretionary sector (XLY), where it also lagged by -6.8%. The stock faced considerable pressure due to regulatory scrutiny and internal restructuring efforts that heightened investor concerns.

A key factor contributing to this decline was an investigation initiated by the European Commission regarding potential compliance issues related to digital regulations impacting both Amazon and Microsoft in cloud computing services. Additionally, news surrounding CEO Andy Jassy selling shares drew attention amid already cautious investor sentiment stemming from significant layoffs affecting nearly 40% of engineering roles as part of cost-cutting measures.

Despite some positive developments earlier in November—such as robust quarterly earnings driven by growth in AWS and strategic partnerships like a $38 billion deal with OpenAI—the momentum did not persist throughout the month. Analysts initially responded favorably with price target upgrades; however, subsequent downgrades from firms like Rothschild Redburn indicated shifting sentiments due to ongoing operational challenges and competitive pressures.

Furthermore, while Amazon's ambitious plans for AI investments were notable, they were overshadowed by rising capital expenditures projected at $150 billion through fiscal year 2026. This raised questions about profitability amidst heavy spending on infrastructure expansion. Recent bond offerings aimed at supporting these initiatives further suggested financial strain that could impact future performance metrics.

Overall, despite moments of optimism surrounding product launches and service expansions—including advancements in grocery delivery services—the prevailing bearish sentiment stemming from regulatory investigations and internal restructuring ultimately dominated AMZN's trajectory this past month compared to its peers in both tech and consumer discretionary sectors.

NasdaqGS:AMZN