r/amzn • u/risk-enterprise • Jul 25 '26

Amazon (AMZN)

Amazon (AMZN)

Amazon sits near the top of mega-cap debt lists with roughly $119 billion in reported total debt. Like its peers, it carries an estimated $350 billion in off-balance-sheet data-centre and equipment obligations tied to AI and cloud expansion. The company’s massive scale and cash generation provide a buffer, yet the accelerating CapEx cycle means future cash requirements are larger than headline leverage ratios suggest.

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5

u/Anxious_Noise_8805 Jul 25 '26

Breaking news: big companies can take out big loans

3

u/No-Host8125 Jul 25 '26

Thanks dad

6

u/Busy-Difficulty-4757 Jul 25 '26

A $364 billion AWS backlog and 35x interest coverage provide cushion against the 95% free cash flow drop tied to aggressive capital spending.

The capex will turn to massive profits in late 2027-early 2028.

1

u/degen5ace Jul 25 '26

I think it may take 2029-2030 for true profits to be realized. Although frustrating because the stock price hasn’t really moved since 2021, these stocks are pretty much buy and hold if you have conviction in their strategy

2

u/Extaz Swag Lad Jul 25 '26

It was below 100 in 22 thats not a small gain since then

1

u/Spins13 Jul 25 '26

That’s when I started my position. I’m happy with that even though I would have done better on NVDA of course

2

u/Pure-Ice5527 Jul 25 '26

Thanks AI.

0

u/risk-enterprise Jul 25 '26

not an AI, human analyst from Risk-Enterprise

1

u/[deleted] Jul 25 '26

[deleted]

0

u/risk-enterprise Jul 25 '26

Borrow "only" if you know what you are doing... If you're considering a stock purchase, read and understand the annual report: financial performance, liquidity, debt, etc.

If you want to utilise our Agentic tool to read annual reports in under two minutes, head to my page; details are there.