Stock Analysis on Net

Amazon.com Inc. (NASDAQ:AMZN)

$24.99

Price to Earnings (P/E)
since 2005

Microsoft Excel

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Calculation

Amazon.com Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Amazon.com Inc. Annual Report.

Share Price Trend
The share price demonstrated a general upward trajectory over the years. Starting from a low base of approximately $1.96 in early 2006, it showed moderate growth with occasional fluctuations through the late 2000s. From 2012 onward, the share price accelerated its increase, reaching over $100 by early 2020. Despite some volatility, including a notable dip around 2022 down to roughly $103, the price rebounded strongly, exceeding $229 by early 2025, reflecting substantial shareholder value appreciation over the period examined.
Earnings per Share (EPS) Trend
The EPS exhibited notable volatility and gradual improvement over the period. Initially, EPS values were quite low, fluctuating around zero, including some negative values in 2013 and 2015, signaling occasional periods of losses or minimal profitability. Starting in 2016, EPS began a consistent upward trend, reaching a peak of approximately $3.28 in early 2022 before dropping sharply to around -$0.27 in 2023. This outlier was followed by a strong recovery, with EPS climbing to $5.59 by the beginning of 2025, indicating improving profitability and business performance in recent years.
Price to Earnings (P/E) Ratio Analysis
The P/E ratio showed considerable fluctuation, indicating varying market expectations and earnings performance relative to the share price. Early years exhibited high P/E ratios exceeding 40, with extreme spikes up to over 600 around 2012 and 2015, corresponding with very low or negative EPS values. This volatility suggests periods where price increases outpaced earnings growth or earnings declined substantially. From 2017 onward, P/E ratios stabilized somewhat, mostly ranging between approximately 40 and 230, with a modest declining pattern recently, suggesting either earnings growth beginning to catch up with share price increases or more tempered investor optimism.
Overall Insights
The data suggest a company transitioning from early-stage volatility with irregular earnings to more stable and robust profitability in later years. Share prices reflect growing investor confidence, especially post-2012, with notable resilience following short-term setbacks. EPS trends indicate operational improvements, despite some intermittent losses. The P/E ratio's high variability in earlier years points to market uncertainties or speculative valuations, which partly normalized as earnings strengthened. By the latest periods analyzed, there appears to be a more balanced relationship between share price appreciation and underlying earnings growth.

Comparison to Competitors


Comparison to Sector (Consumer Discretionary Distribution & Retail)

Amazon.com Inc., P/E, long-term trends, comparison to sector (consumer discretionary distribution & retail)

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Consumer Discretionary)