Amazon stock: buy or sell?
Updated on:
March 27th, 2020
4
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS) segments.
Should I buy Amazon stock?
You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Check the only buy setup that matches with Amazon.com stock now:
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | Yes |
| 100d MA crossing up 200d MA | No |
Is Amazon.com stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.
Unfortunately, we couldn't detect any rating for AMZN stock for the last month.Amazon stock analysis
Daily outlook
Shares of Amazon.com dropped a horrible -2.83% and closed at $1,900.10.
Shares of Amazon.com closed yesterday at $1,900.10 and dropped a horrible -2.83%. Since Monday when AMZN stock price broke up the SMA200d line, it gained $54.01 (2.93%). Since SMA100d and SMA200d crossed up on February/27, AMZN price slid a -4.02%. On February, AMZN hit a new all time high, pushing higher than on February tops. Check different trading setups that use ATHs as triggers.
Weekly outlook
Shares of Amazon.com rose a remarkable 2.93% this week. Early March AMZN collapsed a spooky -6.50% in just one week.
Not so far away is the last price record Amazon.com marked by mid February. This week AMZN price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since mid February when SMA20w and SMA40w crossed up, AMZN price slipped $-234.77 per share (-11.00%).
Amazon stock price history
Amazon stock went public on May 15th, 1997 with a price of $2.441. Since then, AMZN stock surged a 77,773.00%, with an average of 3,535.10% per year. If you had invested right after AMZN's IPO a $1,000 in Amazon stock in 1997, it would worth $777,730.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Amazon stock historical price chart
AMZN stock reached all-time highs on February with a price of $2,185.95.
Amazon stock price target
Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we have not detected any price prediction for Amazon.com stock by any trusted analyst.Financials and fundamental analysis
Earnings date and Earnings per Share
After presenting its last earnings report on April, Amazon.com . Unfortunately, reported EPS is not yet available in our database.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.4 | n/a |
| 2017-Q3 | 2017-10-26 | 0.03 | 0.52 | 1,633.3% |
| 2017-Q4 | 2018-02-01 | 1.85 | 2.16 | 16.8% |
| 2018-Q1 | 2018-04-26 | 1.22 | 3.27 | 168.0% |
| 2018-Q2 | 2018-07-26 | 2.49 | 5.07 | 103.6% |
| 2018-Q3 | 2018-10-25 | 3.29 | 5.75 | 74.8% |
| 2018-Q4 | 2019-01-31 | 5.55 | 6.04 | 8.8% |
| 2019-Q1 | 2019-04-24 | 4.73 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2018, Amazon.com annual turnover rocketed an astounding 30.93% to $232,887.00 M dollars from $177,866.00 marked in 2017. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) appreciated a 2.62% to 4.33%. Amazon.com fiscal year ends in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Amazon.com TTM sales up to March 2019 were $241,545.00 and income $12,005.00 M USD. When comparing this TTM figures with the last reported annuality, we can esteem Amazon.com business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, stepped up a decent 3.72%. Regarding profit margin, Amazon.com remained steady 0.64% to 4.33%| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $74,450 M | - | $274 M0.4% | - |
| 2014 | $88,988 M | 19.53% | $-241.00 M-0.3% | -187.96% |
| 2015 | $107,006 M | 20.25% | $596 M0.6% | -347.30% |
| 2016 | $135,987 M | 27.08% | $2,371 M1.7% | 297.82% |
| 2017 | $177,866 M | 30.80% | $3,033 M1.7% | 27.92% |
| 2018 | $232,887 M | 30.93% | $10,073 M4.3% | 232.11% |
| TTM | $241,545 M | 3.72% | $12,005 M5.0% | 19.18% |
Quarterly financial results
Amazon.com posted $59,700.00 M in sales for 2019-Q1, a -17.52% decline compared to previous quarter. Reported quarter earnings marked $3,561.00 M with a profit margin of 5.96%. Profit margin stepped up a 1.78% compared to previous quarter when profit margin was 4.18%. When comparing turnover to same quarter last year, Amazon.com sales marked an outstanding gain and skyrocketed a 16.96%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $37,960 M | - | $197 M0.5% | - |
| 2017-Q3 | $43,740 M | 15.23% | $256 M0.6% | 29.95% |
| 2017-Q4 | $60,453 M | 38.21% | $1,857 M3.1% | 625.39% |
| 2018-Q1 | $51,042 M | -15.57% | $1,629 M3.2% | -12.28% |
| 2018-Q2 | $52,886 M | 3.61% | $2,534 M4.8% | 55.56% |
| 2018-Q3 | $56,576 M | 6.98% | $2,883 M5.1% | 13.77% |
| 2018-Q4 | $72,383 M | 27.94% | $3,027 M4.2% | 4.99% |
| 2019-Q1 | $59,700 M | -17.52% | $3,561 M6.0% | 17.64% |
Amazon.com ownership
When you are planning to invest in shares of a company, it's worth to check its ownership structure.Amazon.com shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 15.16% of all shares. Investopedia has a good article about the top 4 shareholders in Amazon.
In case of Amazon.com stock, 57.55% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for AMZN stock account 0.00%, no big difference from last month.
For a better understanding, the next table shows ownership data compared to other related companies:
| AMZN | |
|---|---|
| Market cap | $946.2 B |
| Total shares | 498.0 M |
| Float shares | 422.0 M |
| - Institutional holdings (%) | 57.6% |
| - Insider holdings (%) | 15.2% |
| Shares in short selling | 0.0% |
Amazon summary
| Friday, March 27th, 2020 | |
|---|---|
| Open | $1930.86 |
| Close | $1900.10 |
| Day range | $1899.92 - $1939.79 |
| Previous close | $1955.49 |
| Session gain | -2.83% |
| Average true range | $104.85 |
| 50d mov avg | $1,944.44 |
| 100d mov avg | $1,872.99 |
| 200d mov avg | $1,854.19 |
| Daily pattern | |
| Weekly pattern | |
Amazon.com performance
To better understand Amazon.com performance you must becnhmark its gains with other related stocks in same sector or industry. In the following table, we compare Amazon.com performance to :| Stock | 3m | 6m | 12m |
|---|---|---|---|
| AMZNAmazon.com | 1.62% | 10.12% | 6.70% |
Amazon.com competitors
Unfortunately, we could not find any public company that could be defined as Amazon.com competitor. This doesn't mean Amazon.com does not have any competitor in the market, it's just we could not detected it.Latest Amazon stock news
- Investors.comDow Jones Lags Nasdaq, But Amazon.com Clears Buy PointJuly 9, 2019
- InvestorPlaceAmazon.com: The Lilliputians Have LandedJuly 2, 2019
- Investors.comStock Futures Edge Higher; Amazon.com Leads Modest FANG RallyMay 28, 2019
- Investors.comAmazon.com Stock Drags Nasdaq As Indexes Close MixedFebruary 1, 2019
- Investors.comDow Jones Futures: Amazon.com, CVS Lead 5 Key After-Hours Stock MoversFebruary 1, 2019