Capital · Position · Nasdaq, AMZN
Amazon.
One Of Five.
Amazon operates online and physical stores, a marketplace for third party sellers and a logistics network. It also runs Amazon Web Services, which sells computing, storage, database and related cloud infrastructure.
One of five single company positions in the book, alongside XEQT. Amazon operates online and physical stores, a marketplace for third party sellers and a logistics network. It also runs Amazon Web Services, which sells computing, storage, database and related cloud infrastructure. Held, not traded. Not advice.
What Amazon Is
The company itself, before anything about the book.
What It Does
Amazon operates online and physical stores, a marketplace for third party sellers and a logistics network. It also runs Amazon Web Services, which sells computing, storage, database and related cloud infrastructure.
How It Makes Money
Amazon reports three segments, North America, International and AWS. Its disaggregated revenue lines include online stores, physical stores, third party seller services, advertising services, subscription services such as Prime, and AWS.
Who Buys It
Retail consumers, third party sellers, software developers and enterprises using AWS, advertisers and content creators.
Listing
Nasdaq, AMZN
Where It Sits In The Book
One line of a published portfolio, not a pick.
The Sleeve
Stocks and ETFs are forty percent of the book. An all equity index fund does the market exposure and five single company positions sit on top of it.
The Job Of This Half
Distribution, logistics and cloud. The published rule is that each of the five has to be a sentence that can be defended, and if the sentence cannot be said the position does not belong.
Turnover
These are held. The turnover in this sleeve is close to nothing, which is the point of splitting it this way rather than running one concentrated book and hoping.
The Last Full Year
Figures from the Form 10-K filed 5 February 2026 and the fourth quarter earnings release.
Net Sales, FY2025
Up 12.4% from $637.959b.
Of Profit Is AWS
AWS made $45.606b of the $79.975b of operating income on 18.0% of the revenue. Both computed. Amazon does not publish segment margins.
Capital Expenditure
Against $83.0b in FY2024 and $52.7b in FY2023. It has more than doubled in two years.
Free Cash Flow
Amazon’s own measure, down from $38.2b. On a trailing twelve month basis at 30 June 2026 it was an outflow of $7.6b.
Where The Revenue Comes From
The segments, the mix, and which line is actually carrying it. FY2025, the year ended 31 December 2025.
The Retail Machine
Online stores $269.287b up 9.0%. Third party seller services $172.162b up 10.3%. Physical stores $22.561b. Subscription services $49.619b up 11.8%. Growth is steady and the margin is thin: North America made a 6.9% operating margin and International 2.9%, both computed.
AWS Is The Profit Engine
AWS revenue $128.725b, up 19.7%, on a 35.4% operating margin, computed. That margin fell from 37.0%. In Q2 2026 AWS revenue was $42.232b and the computed margin was 39.4%.
Advertising Is The Fastest Line
Advertising services $68.635b, up 22.1%, the fastest growing disclosed line in the business and larger than the entire subscription business.
The Backlog Doubled In Six Months
Remaining performance obligations on contracts over one year were $244.0b at 31 December 2025 and $496b at 30 June 2026, with the weighted average remaining life extending from 4.1 years to 6.4 years. The filings name an OpenAI commitment expanded by $100.0b over eight years and an Anthropic commitment expanded by more than $100.0b over ten years.
What It Does With The Cash
Capital allocation is the decision management actually controls.
No Dividend And No Buyback
Amazon repurchased zero shares in FY2023, FY2024 and FY2025, and zero in the first half of 2026. $6.1b remains authorised under the March 2022 programme. Item 5 of the 10-K records issuer purchases as “None”.
Two Hundred Billion Of Capex Planned
The CEO, in the fourth quarter release: “we expect to invest about $200 billion in capital expenditures across Amazon in 2026”, naming AI, chips, robotics and low earth orbit satellites. First half 2026 capex was already $98.411b.
It Is Now Borrowing To Do It
Amazon issued $15.673b of long term debt in FY2025 after issuing none in FY2024 or FY2023. Long term debt went from $52.623b to $65.648b at year end and to $128.894b by 30 June 2026.
The Balance Sheet Still Absorbs It
Cash and current marketable securities $123.029b, computed. Long term lease liabilities $87.339b. Total stockholders’ equity $411.065b at year end and $551.620b at 30 June 2026.
The Last Reported Quarter
Q2 2026, the three months ended 30 June 2026, with the guidance quoted rather than paraphrased.
Twenty Percent Growth
Net sales $200.606b against $167.702b. Operating income $27.461b against $19.171b, up 43.2%, computed.
AWS Accelerated
AWS revenue $42.232b, up 36.8%, computed, which the company called “our fastest growth in 18 quarters”, at “a $169 billion annualized revenue run rate”. AWS operating income $16.621b, 60.5% of the company total, computed.
The Guidance, In Their Words
“Net sales are expected to be between $197.0 billion and $202.0 billion, or to grow between 9% and 12% compared with third quarter 2025.” And: “Operating income is expected to be between $22.5 billion and $26.5 billion, compared with $17.4 billion in third quarter 2025.”
Free Cash Flow Went Negative
Trailing twelve month free cash flow at 30 June 2026 was an outflow of $7.6b, against a $18.2b inflow a year earlier. Trailing twelve month capex was $173.028b against operating cash flow of $161.403b.
The Case Against
The strongest arguments not to hold it, with figures attached and at the same weight as everything above.
The Cash Flow Story Has Inverted
Operating cash flow rose 20% to $139.514b in FY2025 and free cash flow still fell from $38.2b to $11.2b, then went negative on a trailing basis. Capex is growing faster than the cash the business makes, by design, and the payback is a claim about the future rather than a figure in a filing.
Fifty Seven Percent Of The Profit Is One Segment
AWS made $45.606b of $79.975b of operating income, computed, and its margin fell from 37.0% to 35.4% while it was doing it. The retail business is 82% of revenue and 43% of profit.
The Chips Come From A Named Few
The 10-K states Amazon relies “on a limited group of suppliers for semiconductor products, including products related to artificial intelligence infrastructure such as graphics processing units”, and that constraints “could adversely affect our ability to develop and operate artificial intelligence technologies”.
China Sits On Both Sides Of The Ledger
The 10-K states China based sellers “account for significant portions of our third-party seller services and advertising revenues” and China based suppliers “provide significant portions of our components and finished goods”, naming tariff policy changes and trade disputes as the risk.
Capacity Is A Guess Made Years Early
The filing states that failures to predict demand “result in excess or insufficient fulfillment or data center capacity, service interruptions, increased costs, and impairment charges”. At $200b a year of planned capex, being wrong is expensive in both directions.
Company facts from each company’s most recent annual report on Form 10-K, read September 2026. No price, market cap or forecast appears on this page. Live prices for every position are on the investing page. Every figure on this page comes from a filing with the US Securities and Exchange Commission, read on 4 September 2026. NVIDIA: Form 10-K for the year ended 25 January 2026 filed 25 February 2026, Form 10-Q for the quarter ended 26 July 2026, the Q2 FY2027 earnings release and CFO commentary, and the Form 8-K filed 17 August 2026. Tesla: Form 10-K for the year ended 31 December 2025 filed 29 January 2026, the Q4 2025 and Q2 2026 shareholder updates, and the Form 10-Q for the quarter ended 30 June 2026. Apple: Form 10-K for the year ended 27 September 2025 filed 31 October 2025, and the Q2 and Q3 fiscal 2026 earnings releases. Amazon: Form 10-K for the year ended 31 December 2025 filed 5 February 2026, the Q4 2025 and Q2 2026 earnings releases, and the Form 10-Q for the quarter ended 30 June 2026. Palantir: Form 10-K for the year ended 31 December 2025 filed 17 February 2026, and the Q4 2025 and Q2 2026 earnings releases. Where a figure is a ratio the company does not itself publish, the line says “computed”. No share price, market capitalisation, valuation multiple, price target or analyst view appears anywhere on this page, because every one of those needs a price and a price printed into a static page is wrong within the hour. Live prices for every position are on the investing page. Not financial advice.
The Other Four
The rest of the concentrated half, one page each.
NVIDIA · NVDA
NVIDIA designs graphics processing units, networking hardware and the CUDA software stack used for accelerated computing.
Tesla · TSLA
Tesla designs, manufactures and sells electric vehicles and battery energy storage systems.
Apple · AAPL
Apple designs and sells smartphones, personal computers, tablets, wearables and accessories, and sells related software and services.
Palantir · PLTR
Palantir builds software platforms that integrate an organisation’s data and connect it to operational decisions.
XEQT · The Index Half
The all equity index fund the five positions sit on top of.
Common Questions
Amazon operates online and physical stores, a marketplace for third party sellers and a logistics network. It also runs Amazon Web Services, which sells computing, storage, database and related cloud infrastructure.
Amazon reports three segments, North America, International and AWS. Its disaggregated revenue lines include online stores, physical stores, third party seller services, advertising services, subscription services such as Prime, and AWS.
It sits in the concentrated half of the stocks sleeve under distribution, logistics and cloud. The published rule for that half is that each position has to be a sentence that can be defended, and the sleeve is held rather than traded.
AWS supplies most operating income, so shifts in cloud demand move profits. Retail carries heavy fixed costs in fulfilment centres, transportation and data centres. Antitrust and marketplace regulation could force changes to seller and Prime practices. These are structural risks the company itself discloses, not a forecast.
$716.9b in FY2025, the year ended 31 December 2025, per the company’s own filing with the SEC. Up 12.4% from $637.959b.
The Cash Flow Story Has Inverted. Fifty Seven Percent Of The Profit Is One Segment. The Chips Come From A Named Few. China Sits On Both Sides Of The Ledger. Capacity Is A Guess Made Years Early. Each of those is set out with figures on this page, taken from the company’s filings rather than from an opinion about them.
No. This is a published position with the reasoning attached, which is a different thing. Nothing here is financial advice and Cody Wise is not a licensed advisor.
One Line Of The Book.
The Rest Is Published Too.
Every position, the split behind them, and live prices on all of it.
Not financial advice.