Amazon stock: buy or sell?
Updated on:
February 14th, 2020
5
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?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.These 2 buy setups match with Amazon.com stock right now:
| Buy setup | Elegible |
|---|---|
| New all-time high | Yes |
| New 52 week high | Yes |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Amazon.com stock a buy?
Banks and financial institutions publish stock ratings everyday.
Unfortunately, we couldn't detect any rating for AMZN stock for the last 30 days.Amazon stock analysis
Daily outlook
Amazon.com declined -0.70% on February 14th to $2,134.87 after marking all time highs on Tuesday.
After reaching all time highs on Tuesday, Amazon.com declined -0.70% to $2,134.87. On January/28 AMZN price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On Tuesday, AMZN hit new all time highs, pushing higher previous ATH of $2,135.60 recorded on Monday. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Weekly outlook
Shares of Amazon.com ended this week at $2,134.87 after marking a new all time high ($2,185.95) and jumped a decent 2.67%. Late January AMZN climbed an amazing 7.32% in just one week. Counting this, it's been 3 climbing weeks in a row, soaring a 14.65%.
Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $1,917.82 resistance. Since late December 2019 when AMZN stock price broke up the SMA40w line, it gained $348.37 (19.50%).
Amazon stock price history
Amazon stock went public on May 15th, 1997 with a price of $2.441. Since then, AMZN stock surged a 87,394.70%, with an average of 3,972.50% per year. If you had invested right after AMZN's IPO a $1,000 in Amazon stock in 1997, it would worth $873,947.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Amazon stock historical price chart
AMZN stock reached all-time highs on Tuesday 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, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' AMZN stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we have not detected any price target for Amazon.com stock by any trusted analyst.Financials and fundamental analysis
Earnings date and Earnings per Share
After publishing 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 revenues climbed an exceptional 30.93% to $232,887.00 M USD from $177,866.00 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) grew a 2.62% to 4.33%. To have an up to date picture of the financial situation of Amazon.com, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Amazon.com TTM sales up to March 2019 were $241,545.00 and earnings were $12,005.00 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem Amazon.com business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, inched a fine 3.72%. Nevertheless, profit margin (net income/revenues) stayed constant at 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 reported $59,700.00 million in sales for 2019-Q1, a -17.52% decline compared to previous quarter. Reported quarter earnings marked $3,561.00 million with a profit margin of 5.96%. Profit margin inched a 1.78% compared to previous quarter when profit margin was 4.18%. When comparing sales to same quarter last year, Amazon.com sales marked an outstanding growth and boosted 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 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 15.21% of all shares. Investopedia has a good article about the top 4 shareholders in Amazon.
In case of Amazon.com stock, 57.97% 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 context understanding, the next table shows ownership data compared to other related stocks:
| AMZN | |
|---|---|
| Market cap | $1,063.2 B |
| Total shares | 498.0 M |
| Float shares | 420.9 M |
| - Institutional holdings (%) | 58.0% |
| - Insider holdings (%) | 15.2% |
| Shares in short selling | 0.0% |
Amazon summary
| Friday, February 14th, 2020 | |
|---|---|
| Open | $2155.68 |
| Close | $2134.87 |
| Day range | $2125.89 - $2159.04 |
| Previous close | $2149.87 |
| Session gain | -0.70% |
| Average true range | $49.47 |
| 50d mov avg | $1,889.43 |
| 100d mov avg | $1,825.24 |
| 200d mov avg | $1,843.85 |
| Daily pattern | |
| Weekly pattern | lb02c |
Amazon.com performance
Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We picked as the bechmarking frame for Amazon.com stock.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| AMZNAmazon.com | 22.73% | 19.10% | 32.77% |
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