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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.

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There have been a lot of interesting things that have transpired in the months that followed my previous coverage on Amazon.com, Inc. ( AMZN ).…