Stock explainer / E-commerce and cloud / Reviewed 11 October 2026
Amazon stock, explained for beginners
The short answer
Amazon runs a global online shop and marketplace, the AWS cloud platform, Prime subscriptions, advertising and devices such as Kindle and Echo.
Investing involves risk and you can lose money. This page explains general ideas; it is not personal financial, tax or investment advice.
How Amazon makes money
- Online sales and fees from third-party sellers
- Amazon Web Services (AWS) cloud computing
- Advertising and Prime subscriptions
Main strengths
- Huge logistics network
- AWS is a major, profitable cloud business
- Fast-growing advertising business
Main risks
- Thin margins in retail
- Competition in cloud and online shopping
- Labour and regulatory scrutiny
Five questions to ask about Amazon
These match Mesodian's five core scores. Members see each score, updated, with the factors behind it.
- Quality
- Which parts of the business generate most of the profit?
- Growth
- Is AWS still growing quickly?
- Value
- How does its valuation compare with its profits and cash flow?
- Sentiment
- What do analysts expect from retail margins?
- Risk
- How sensitive is it to weaker consumer spending?
This explainer is general education about a well-known company. It is not a recommendation to buy, sell or hold AMZN. Check the company's latest reports before making decisions.
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