AMAZON.COM, INC.

Red flags

• Some server and networking equipment lives were shortened from six to five years, increasing 2025 depreciation by $1.4 billion and reducing net income by $1.0 billion.
• Amazon recorded approximately $2.7 billion of severance costs and $1.3 billion of asset impairments in 2025, indicating meaningful restructuring and portfolio-adjustment costs.
• The company had $68.0 billion of unsecured senior notes outstanding at year-end 2025, including $15.0 billion issued in November 2025; combined weighted-average remaining life was 14.1 years.
• Inventory write-down reserves increased to $3.3 billion from $3.0 billion, while non-cancellable component and contract-manufacturing commitments can create costs if demand forecasts are reduced.
• Share count plus outstanding stock awards increased from 10.9 billion to 11.0 billion during 2025, indicating ongoing dilution risk.