Amazon Margin Peak Faces Reversal Amid Capital Expenditure Surge

Amazon's stock has underperformed the S&P 500 over the past year, but its margins have hit multi-year highs.

The company trades at $256.26, about 90% of its 52-week high and above both its 50-day and 200-day moving averages.

Its trailing net income includes non-operating gains that distort historical comparisons, artificially depressing the earnings multiple to 20.4 times.

The extreme is in profitability, with a net margin of 17.4% on $775.7 billion of trailing-twelve-month revenue, nearly double its three-year average of 9.4%.

The operating lift is concentrated in AWS, which produced $16.6 billion of the $27.5 billion of operating income reported for Q2 2026.