Amazon is global e-commerce company headquartered in Seattle, Washington. Founded in 1994 by Jeff Bezos, Amazon is one of the five biggest publicly-listed companies in the United States by market capitalization. It's best known globally for its Amazon e-commerce marketplace and video-streaming service, Amazon Prime Video. In addition to its cloud computing business, Amazon Web Services, Amazon manufactures and sells electronic devices such as the Kindle, Fire tablets, Fire TVs and the Echo. Amazon operates in e-commerce, cloud computing, online advertising, digital streaming and artificial intelligence.
Amazon's revenue is broken down into seven business segments: Online stores, Physical stores, Third-party seller services, Subscription services, Advertising services, AWS and Other. Amazon.com Inc (AMZN) stock launched on the NASDAQ in 1997 and its share price has since experienced massive growth.
April 15, 2024: In CEO Andy Jassy's recent letter to Amazon shareholders, he detailed the firm's cost-cutting efforts and also his optimisim around the impact of AI and the potential value it could add to the business.
April 8, 2024: Amazon stock continues to perform and is on track to beat past highs, with analysts at Morgan Stanley positive that it can further enhance its retail margins.
March 31, 2024: Wells Fargo analysts maintained an Overweight rating on Amazon, with an updated price target of $217 (from $211), according to Benzinga.
March 26, 2024: Telsey Advisory Group analysts maintained an Outperform rating on Amazon, with a price target of $200, according to Benzinga.
Amazon expects first-quarter sales of between $138 billion and $143.5 billion, representing growth of 8% to 13%. Analysts were expecting revenue of $142.1 billion.
On a company conference call, CEO Andy Jassy predicted that investment in AI will generate tens of billions in revenue.
Only you can make the decision on the time to leap... but here's some supporting information and analysis.
Over the last 12 months, Amazon's shares have ranged in value from as little as $101.15 up to $189.77. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Amazon's is 1.16. This would suggest that Amazon's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
Historical closes compared with the last close of $174.63
| 1 week (2024-04-11) | -6.18% |
|---|---|
| 1 month (2024-03-19) | -1.98% |
| 3 months (2024-01-18) | 12.42% |
| 6 months (2023-10-19) | 39.51% |
| 1 year (2023-04-19) | 68.22% |
| 2 years (2022-04-19) | -94.33% |
| 3 years (2021-04-19) | -94.76% |
| 5 years (2019-04-17) | -90.62% |
The gauge below shows real-time ratings that are based on 26 popular indicators such as moving averages, for specific time periods. It's not a recommendation but is simply technical analysis that can form part of your research.
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Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value. Check out the Amazon P/E ratio, PEG ratio and EBITDA
Amazon's current stock price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 63x. In other words, Amazon stocks trade at around 63x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the United States stock markets on average as of November 09, 2023 (20.44). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Amazon's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.32. A PEG ratio over 1 can be interpreted as meaning shares are overvalued at the current rate of growth, or may anticipate an acceleration in growth.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Amazon's future profitability. By accounting for growth, it could also help you if you're comparing the stock prices of multiple high-growth companies.
Amazon's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $85.5 billion.
The EBITDA is a measure of a Amazon's overall financial performance and is widely used to measure a its profitability.
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