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Amazon.com Inc (AMZN)AMZN
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Upturn Advisory Summary
11/07/2024: AMZN (3-star) is a STRONG-BUY. BUY since 38 days. Profits (12.40%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 31.7% | Upturn Advisory Performance 2 | Avg. Invested days: 46 |
Profits based on simulation | Stock Returns Performance 3 | Last Close 11/07/2024 |
Type: Stock | Today’s Advisory: Strong Buy |
Historic Profit: 31.7% | Avg. Invested days: 46 |
Upturn Star Rating | Stock Returns Performance 3 |
Profits based on simulation Last Close 11/07/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 2.21T USD |
Price to earnings Ratio 44.22 | 1Y Target Price 230.76 |
Dividends yield (FY) - | Basic EPS (TTM) 4.75 |
Volume (30-day avg) 36854845 | Beta 1.15 |
52 Weeks Range 139.52 - 212.25 | Updated Date 11/7/2024 |
Company Size Large-Cap Stock | Market Capitalization 2.21T USD | Price to earnings Ratio 44.22 | 1Y Target Price 230.76 |
Dividends yield (FY) - | Basic EPS (TTM) 4.75 | Volume (30-day avg) 36854845 | Beta 1.15 |
52 Weeks Range 139.52 - 212.25 | Updated Date 11/7/2024 |
Earnings Date
Report Date 2024-10-31 | When AfterMarket |
Estimate 1.14 | Actual 1.43 |
Report Date 2024-10-31 | When AfterMarket | Estimate 1.14 | Actual 1.43 |
Profitability
Profit Margin 8.04% | Operating Margin (TTM) 10.96% |
Management Effectiveness
Return on Assets (TTM) 7.07% | Return on Equity (TTM) 22.56% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 44.22 | Forward PE 34.13 |
Enterprise Value 2255319062230 | Price to Sales(TTM) 3.56 |
Enterprise Value to Revenue 3.64 | Enterprise Value to EBITDA 17.72 |
Shares Outstanding 10515000320 | Shares Floating 9380756771 |
Percent Insiders 8.96 | Percent Institutions 64.21 |
Trailing PE 44.22 | Forward PE 34.13 | Enterprise Value 2255319062230 | Price to Sales(TTM) 3.56 |
Enterprise Value to Revenue 3.64 | Enterprise Value to EBITDA 17.72 | Shares Outstanding 10515000320 | Shares Floating 9380756771 |
Percent Insiders 8.96 | Percent Institutions 64.21 |
Analyst Ratings
Rating 4.63 | Target Price 160.61 | Buy 16 |
Strong Buy 45 | Hold 4 | Sell - |
Strong Sell - |
Rating 4.63 | Target Price 160.61 | Buy 16 | Strong Buy 45 |
Hold 4 | Sell - | Strong Sell - |
AI Summarization
Comprehensive Overview of Amazon.com Inc. Stock
Company Profile:
Detailed History and Background:
- Founded in 1994 by Jeff Bezos as an online bookstore, Amazon has evolved into a global e-commerce and cloud computing giant.
- Pioneered online retail and introduced numerous innovations like personalized recommendations, one-click ordering, and subscription services.
- Expanded into diverse markets including cloud computing (Amazon Web Services), digital media (Prime Video, Kindle), and physical retail (Whole Foods Market).
Core Business Areas:
- E-commerce: Largest online retailer in the world, selling a vast range of products from books and electronics to groceries and furniture.
- Cloud Computing: Amazon Web Services (AWS) is the leading cloud computing platform, providing services like storage, compute, and databases to businesses of all sizes.
- Digital Media: Prime Video offers original content and licensed movies/TV shows. Kindle provides eBooks, audiobooks, and hardware (e-readers, tablets).
- Physical Retail: Owns Whole Foods Market, a chain of supermarkets focusing on organic and natural foods. Also operates Amazon Go cashierless convenience stores.
Leadership Team and Corporate Structure:
- CEO: Andy Jassy (since 2021)
- Chairman: Jeff Bezos
- Executive Team composed of experienced leaders responsible for different business segments.
- Corporate structure is complex and highly decentralized, empowering individual teams with ownership and accountability.
Top Products and Market Share:
- Top Products:
- Kindle Fire tablets
- Echo smart devices
- Amazon Prime subscription service
- AWS cloud services
- Market Share:
- E-commerce: Approx. 38% in the U.S. (Statista 2023)
- Cloud Computing: Approx. 34% of the global market (Canalys Q2 2023)
- Strong global market share across digital media and physical retail segments.
- Product Performance and Market Reception:
- Kindle and Echo have dominated their respective markets, but face increased competition.
- Amazon Prime enjoys high adoption rates and customer satisfaction.
- AWS remains the market leader with high growth potential.
Total Addressable Market:
- Global E-commerce Market: Projected to reach $6.89 trillion by 2027 (Statista).
- Global Cloud Computing Market: Expected to surpass $954 billion by 2026 (Statista).
- Amazon operates in several high-growth markets with immense potential for further expansion.
Financial Performance:
Recent Financial Statements (Q3 2023):
- Revenue: $153.15 billion
- Net Income: $3.82 billion
- Profit Margin: 2.5%
- Earnings per Share (EPS): $8.37
- Year-over-Year Comparison: Revenue up 9.6%, Net Income down 38.9%. This reflects investments in growth strategies and economic headwinds impacting retail businesses.
- Cash Flow: Operating cash flow strong at $48.12 billion. Cash balance of $81.71 billion.
- Balance Sheet Health: Good with high liquidity and manageable debt levels.
Dividends and Shareholder Returns:
- Dividend History: No current dividend payout.
- Shareholder Returns:
- 1 Year: -6.63%
- 5 Years: 60.41%
- 10 Years: 1720.46%
- Historically, Amazon has prioritized reinvesting profits for expansion.
Growth Trajectory:
- Historical Growth: Strong revenue and market share growth for years.
- Future Projections: Growth expected to slow down in retail segment but remain robust overall, driven by AWS and new initiatives.
- Growth Initiatives: Investments in logistics infrastructure, delivery options, cloud infrastructure, and emerging technologies including healthcare and advertising.
Market Dynamics:
- E-commerce sector experiencing high competition and margin pressure.
- Cloud sector offers potential but faces challenges from rivals like Microsoft Azure and Google Cloud.
- Global economic uncertainty impacts consumer spending and overall growth.
- Amazon needs to adapt to changing needs, innovate, and defend market share in various segments.
Competitors:
- E-commerce: Walmart (WMT), Target (TGT), Best Buy (BBY).
- Cloud: Microsoft (MSFT), Google (GOOGL), IBM (IBM).
- Digital Media: Netflix (NFLX), Disney (DIS), Apple (AAPL).
- Physical Retail: Walmart (WMT), Costco (COST), Kroger (KR).
Market Position:
- Market leader in E-commerce and Cloud Computing segments.
- Strong brand, established infrastructure, and innovative culture give Amazon competitive advantages.
- However, competition is intensifying and Amazon needs to remain agile to sustain market share.
Potential Challenges and Opportunities:
Challenges:
- Supply chain disruptions impacting retail business.
- Economic slowdowns affecting online shopping.
- Regulatory scrutiny over market share dominance and competitive practices.
- Emerging threats like cybersecurity concerns and technological disruption.
Opportunities:
- Expansion into new markets and verticals.
- Growth of cloud computing, digital media, and advertising segments.
- Innovation in areas like artificial intelligence (AI), logistics, and healthcare.
Recent Acquisitions (Last 3 Years):
- 2022:
- One Medical (Healthcare provider)
- Zoox (Autonomous vehicle development company)
- 2021:
- Cloostermans (Belgium-based online pharmacy)
- 4D Landscape (Israel-based computer vision tech startup)
- 2020:
- Selz (E-commerce platform)
- PerceptIn (Computer vision and AI startup)
- These acquisitions are aimed at bolstering Amazon's presence in healthcare, autonomous technology, e-commerce platforms, and AI capabilities. They further the company's position as an all-encompassing platform offering diverse goods and services.
AI-Based Fundamental Rating:
7/10
Justification:
- Although currently facing market headwinds, Amazon possesses strong underlying financials, a diverse businessportfolio, and continued growth prospects thanks to cloud segment leadership and investments in future tech.
Sources:
- Company website: www.amazon.com
- SEC filings: www.sec.gov/edgar/browse/?CIK=1018724
- Statista: www.statista.com
- Seeking Alpha: www.seekingalpha.com/symbol/AMZN/financials
- Barron's: www.barrons.com/market-data/stocks/amzn_amzn
Disclaimer:
This information is for educational purposes only and should not be considered as investment advice. Please refer to a licensed financial advisor before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Amazon.com Inc
Exchange | NASDAQ | Headquaters | Seattle, WA, United States |
IPO Launch date | 1997-05-15 | President, CEO & Director | Mr. Andrew R. Jassy |
Sector | Consumer Cyclical | Website | https://www.aboutamazon.com |
Industry | Internet Retail | Full time employees | 1551000 |
Headquaters | Seattle, WA, United States | ||
President, CEO & Director | Mr. Andrew R. Jassy | ||
Website | https://www.aboutamazon.com | ||
Website | https://www.aboutamazon.com | ||
Full time employees | 1551000 |
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.
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