Buy Or Sell Amazon Stock?

Core Viewpoint - AMZN stock shows strong operating performance and financial status despite a year-to-date gain of about 10%, which lags behind the Nasdaq-100's 20% increase, indicating consistent earnings growth driven by Amazon Web Services (AWS) and e-commerce efficiency gains [1][3] Valuation - Current valuations for AMZN are considered justified due to the durability of AWS's competitive advantage, ongoing margin expansion, and investments in logistics automation and AI infrastructure, despite elevated multiples [3][5] Growth - Amazon's top line has grown at an average rate of 11.3% over the past three years, with revenues increasing from $604 billion to $670 billion in the last year, and quarterly revenues rising by 13.3% to $168 billion [8] Profitability - AMZN's operating income over the last 12 months was $76 billion, representing an operating margin of 11.4%, with a cash flow margin of 18.1%, producing nearly $121 billion in operating cash flow [8] Financial Stability - AMZN's debt stood at $134 billion with a market capitalization of $2.6 trillion, resulting in a debt-to-equity ratio of 5.2%. The company has $93 billion in cash, leading to a cash-to-assets ratio of 13.7% [11] Market Resilience - AMZN has shown resilience during economic downturns, performing slightly better than the S&P 500 index in terms of stock decline and recovery speed during significant market events [9][12]