Amazon's Sky-High Margins May Soon Come Crashing Down

Amazon's stock has trailed the market over the past year, but its margins are at 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.

The trailing earnings multiple is artificially depressed due to non-operating gains that distort historical comparisons.

Net margin on $775.7 billion of trailing-twelve-month revenue is 17.4%, the highest in at least five years, but the operating lift is concentrated in AWS, which produced $16.6 billion of the $27.5 billion of operating income reported for Q2 2026.

The company's planned capital bill behind that margin is still rising, with cash capital expenditure increased to approximately $220 billion from about $200 billion.