Amazon stock: buy or sell?

AMZN stock price: $1,857.52 -0.08% At close on May 21st, 2019

Updated on:
May 21st, 2019

4

Amazon.com ended today at $1,857.52 and stayed stable a tight -0.08%. With Tuesday it's been 3 sliding days in a row, loosing $-50.05 (-2.67%).

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?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Amazon.com stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Amazon.com stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 15 ratings published for AMZN stock in the last month.

The general sentiment of these ratings is bullish for AMZN stock, with 14 positive ratings.
Is AMZN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-8Societe GeneraleBuyBuy
2019-4-29JPMorgan Chase & Co.n/aBuy
2019-4-26UBS Groupn/aBuy
2019-4-26Raymond JamesOutperformOutperform
2019-4-26Raymond JamesOutperformOutperform
2019-4-26Piper Jaffray Companiesn/aOverweight
2019-4-26OppenheimerOutperformOutperform
2019-4-26JPMorgan Chase & Co.n/aBuy
2019-4-26JPMorgan Chase & Co.n/aOverweight
2019-4-26Goldman Sachs Groupn/aBuy
2019-4-26Deutsche BankBuyBuy
2019-4-26Deutsche BankBuyBuy
2019-4-26Credit Suisse Groupn/aOutperform
2019-4-26BarclaysOverweightIn-Line
2019-4-26Bank of AmericaBuyBuy

Amazon stock analysis

Daily outlook

Shares of Amazon.com closed today at $1,857.52 and stayed steady a tight -0.08%.

Amazon.com shares stayed steady -0.08% to $1,857.52 today. Since price and SMA200d lines crossed up on March, AMZN climbed $145.16 (8.48%).

AMZN stock chart (daily)

Weekly outlook

Amazon.com shares decreased -0.61% this week, ending at $1,857.52. With this, it's been 3 sliding weeks in a row, loosing $-104.94 (-5.38%).

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $1,964.40 resistance. Since SMA20w and SMA40w crossed up this week, AMZN price slid a -0.61%. Since mid March when AMZN stock price broke up the SMA40w line, it gained $145.16 (8.48%). Far behind is the all-time high Amazon.com hit early September but price is just -9.41% below that top.

AMZN stock chart (weekly)

Amazon stock price history

Amazon IPO was on May 15th, 1997 at $2.44 per share1. Since then, AMZN stock grew a 76,027.90%, with an average of 3,455.80% per year. If you had invested right after AMZN's IPO a $1,000 in Amazon stock in 1997, it would worth $760,279.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Amazon stock historical price chart

AMZN stock reached all-time highs on September with a price of $2,050.50.

Amazon stock price target is $2,199.00

Nobody can reliably foresee how stock prices may evolve in the future. 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. We found 10 price forecasts for AMZN stock published in the last month:
AMZN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-4-8Societe GeneraleInitiatesn/a$2,370.00-
2019-4-26Raymond JamesRaises Target$1,960.00$2,030.003.6%
2019-4-26Piper Jaffray CompaniesRaises Target$2,070.00$2,225.007.5%
2019-4-26OppenheimerReiterates$2,085.00$2,100.000.7%
2019-4-26JPMorgan Chase & Co.Reiterates$2,050.00$2,200.007.3%
2019-4-26JPMorgan Chase & Co.Raises Target$2,050.00$2,200.007.3%
2019-4-26Deutsche BankRaises Target$2,300.00$2,315.000.7%
2019-4-26Credit Suisse GroupReiterates$2,100.00$2,200.004.8%
2019-4-26BarclaysRaises Target$1,930.00$2,050.006.2%
2019-4-26Bank of AmericaReiterates$2,100.00$2,300.009.5%
(in average)$2,071.70$2,199.006.0%
Moving in a range from $2,370.00 and $2,030.00, the price prediction for AMZN stock is $2,199.00. In average, analysts' outlook on AMZN price target is positive, increasing the target by a 6.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on April/24, Amazon.com decreased a lame -2.33%. As soon as we get its actual EPS from the earnings report, we will update this report.
AMZN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.4n/a
2017-Q32017-10-260.030.521,633.3%
2017-Q42018-02-011.852.1616.8%
2018-Q12018-04-261.223.27168.0%
2018-Q22018-07-262.495.07103.6%
2018-Q32018-10-253.295.7574.8%
2018-Q42019-01-315.556.048.8%
2019-Q12019-04-244.73n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw an exceptional growth of 30.93% to $232,887.00 M dollars. However, its income margin (compared to revenues) inched to 4.33%, that is $10,073.00 million.

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 income was $12,005.00 million dollars. If we compare this TTM figures with the last reported annuality, we can review Amazon.com business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, gained a good 3.72%. However, profit margin (net income/sales) stayed steady at 4.33%.

AMZN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$74,450 M-$274 M0.4%-
2014$88,988 M19.53%$-241.00 M-0.3%-187.96%
2015$107,006 M20.25%$596 M0.6%-347.30%
2016$135,987 M27.08%$2,371 M1.7%297.82%
2017$177,866 M30.80%$3,033 M1.7%27.92%
2018$232,887 M30.93%$10,073 M4.3%232.11%
TTM $241,545 M3.72%$12,005 M5.0%19.18%

Quarterly financial results

Amazon.com posted $59,700.00 million in sales for 2019-Q1, a -17.52% less compared to previous quarter. Reported quarter income marked $3,561.00 M with a profit margin of 5.96%. Profit margin grew 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 amazing increase and rocketed a 16.96%.
AMZN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$37,960 M-$197 M0.5%-
2017-Q3$43,740 M15.23%$256 M0.6%29.95%
2017-Q4$60,453 M38.21%$1,857 M3.1%625.39%
2018-Q1$51,042 M-15.57%$1,629 M3.2%-12.28%
2018-Q2$52,886 M3.61%$2,534 M4.8%55.56%
2018-Q3$56,576 M6.98%$2,883 M5.1%13.77%
2018-Q4$72,383 M27.94%$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 stock, it's always 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 16.12% of all shares. Investopedia has a good article about the top 4 shareholders in Amazon.

In case of Amazon.com stock, 57.12% 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 companies:

AMZNBKSCBSCOSTEBAY
Market cap$914.5 B$364.4 M$17.2 B$109.9 B$31.9 B
Total shares492.3 M73.0 M352.0 M439.9 M871.5 M
Float shares413.2 M61.9 M333.3 M433.2 M823.3 M
  - Institutional holdings (%)57.1%80.2%0.0%73.5%88.0%
  - Insider holdings (%)16.1%25.3%7.8%0.5%5.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Amazon summary

Tuesday, May 21st, 2019
Open$1874.79
Close$1857.52
Day range$1846.00 - $1879.00
Previous close$1858.97
Session gain-0.08%
Average true range$45.25
50d mov avg$1,841.94
100d mov avg$1,735.38
200d mov avg$1,756.11
Daily patternlt02a
Weekly pattern lb02a

Amazon.com performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Amazon.com, the comparison is made against Barnes & Noble, CBS, Costco Wholesale, eBay, Alphabet, MercadoLibre, Microsoft, Overstock.com and Walmart.
Stock3m6m12m
AMZNAmazon.com13.85%23.66%15.36%
BKSBarnes & Noble-19.90%-21.54%2.46%
CBS -5.01%-8.61%-2.67%
COSTCostco Wholesale15.86%14.19%27.29%
EBAYeBay-2.06%29.12%-3.23%
GOOGLAlphabet3.39%12.07%6.49%
MELIMercadoLibre53.17%84.93%82.06%
MSFTMicrosoft14.78%24.11%31.11%
OSTKOverstock.com-43.74%-46.54%-66.40%
WMTWalmart2.67%8.06%25.35%

Amazon.com competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Amazon.com. We picked 9 companies as Amazon.com competitors as they are in the same industry or have similar market objectives.

Latest Amazon stock news