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Amazon’s Financial Overview for 2025
Amazon’s operating cash flow increased by 20% year over year, reaching $139.5 billion, while its annualized revenue run rate for Amazon Web Services (AWS) hit $142 billion, fueled by a 24% sales growth in Q4 2025. However, the company’s free cash flow dropped significantly to $11.2 billion, down from $38.2 billion in 2024, primarily due to a planned capital expenditure of nearly $200 billion for 2026.
As of now, Amazon’s stock trades near $199, reflecting a price-to-earnings ratio of approximately 28 and a price-to-operating-cash-flow ratio of 15. While the market faces challenges like geopolitical tensions and rising capital expenditures, the substantial cash generation from its core business and the momentum in AWS indicates a potentially attractive investment opportunity.
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