Summary

• Amazon.com delivered robust Q1 2026 results, with net sales up 16.6% YoY to $181.52B and operating margin expanding to 13.1%.
• AMZN's growth is increasingly driven by AWS, which posted 28% YoY growth—its highest in four years—while e-commerce and advertising remain strong pillars.
• Despite massive capex ($40B+ in Q1, $200B planned for the year) and overbought technicals, AMZN maintains a resilient business model and strong liquidity ($87B cash).
• I downgrade AMZN from strong buy to buy, citing short-term profit-taking risks, but view long-term upside as compelling given its ecosystem, innovation, and attractive valuation.

There have been a lot of interesting things that have transpired in the months that followed my previous coverage on Amazon.com, Inc. (AMZN). And despite increased macroeconomic volatility, it bounced back, delivered nearly 30% returns, and justified

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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