Amazon Inc Stock Buy Hold or Sell Recommendation
| AMZN Stock | USD 212.80 0.09 0.04% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Amazon Inc is 'Strong Hold'. The recommendation algorithm takes into account all of Amazon's available fundamental, technical, and predictive indicators you will find on this site.
Check out Amazon Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Amazon and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Amazon Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Amazon |
Execute Amazon Buy or Sell Advice
The Amazon recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Amazon Inc. Macroaxis does not own or have any residual interests in Amazon Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Amazon's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Amazon Trading Alerts and Improvement Suggestions
| Amazon Inc is unlikely to experience financial distress in the next 2 years | |
| Amazon Inc currently holds 130.9 B in liabilities with Debt to Equity (D/E) ratio of 1.2, which is about average as compared to similar companies. Amazon Inc has a current ratio of 0.92, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Amazon's use of debt, we should always consider it together with its cash and equity. | |
| Amazon Inc has a strong financial position based on the latest SEC filings | |
| About 65.0% of Amazon shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Why Vanguard 500 Index Fund Is Among the Best Vanguard Funds to Invest In For Retirees |
Amazon Returns Distribution Density
The distribution of Amazon's historical returns is an attempt to chart the uncertainty of Amazon's future price movements. The chart of the probability distribution of Amazon daily returns describes the distribution of returns around its average expected value. We use Amazon Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Amazon returns is essential to provide solid investment advice for Amazon.
| Mean Return | 0.09 | Value At Risk | -2.43 | Potential Upside | 2.40 | Standard Deviation | 1.65 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Amazon historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Amazon Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Amazon, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Amazon Inc back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | Bank Of America Corp | 2024-12-31 | 78 M | Bank Of New York Mellon Corp | 2024-12-31 | 67.1 M | Wellington Management Company Llp | 2024-12-31 | 66.4 M | Ubs Asset Mgmt Americas Inc | 2024-12-31 | 66 M | Capital World Investors | 2024-12-31 | 65.7 M | Nuveen Asset Management, Llc | 2024-09-30 | 64.7 M | Charles Schwab Investment Management Inc | 2024-12-31 | 59.6 M | Amvescap Plc. | 2024-12-31 | 57.6 M | Capital Research & Mgmt Co - Division 3 | 2024-12-31 | 57.3 M | Vanguard Group Inc | 2024-12-31 | 823.4 M | Blackrock Inc | 2024-12-31 | 688.6 M |
Amazon Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (2.8B) | (9.5B) | (2.6B) | 1.4B | (1.9B) | (2.0B) | |
| Change In Cash | 6.0B | (5.9B) | 17.8B | 19.6B | 8.4B | 8.8B | |
| Free Cash Flow | 25.9B | (14.7B) | (16.9B) | 32.2B | 32.9B | 34.5B | |
| Depreciation | 25.3B | 34.3B | 41.9B | 48.7B | 52.8B | 55.4B | |
| Other Non Cash Items | (2.7B) | (14.2B) | 17.0B | (748M) | (13.5B) | (12.9B) | |
| Capital Expenditures | 40.1B | 61.1B | 63.6B | 52.7B | 83.0B | 87.1B | |
| Net Income | 21.3B | 33.4B | (2.7B) | 30.4B | 59.2B | 62.2B | |
| End Period Cash Flow | 42.4B | 36.5B | 54.3B | 73.9B | 82.3B | 86.4B | |
| Investments | (22.2B) | (773M) | 29.0B | (48.1B) | (94.3B) | (89.6B) | |
| Change Receivables | (7.7B) | (8.2B) | (18.2B) | (21.9B) | (19.7B) | (18.7B) | |
| Net Borrowings | (411M) | 9.0B | 6.3B | 19.9B | 22.9B | 24.0B | |
| Change To Netincome | 7.6B | 6.0B | (1.7B) | 28.4B | 32.7B | 34.3B |
Amazon Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Amazon or Broadline Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Amazon's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Amazon stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.08 | |
β | Beta against Dow Jones | 0.60 | |
σ | Overall volatility | 1.62 | |
Ir | Information ratio | 0.05 |
Amazon Volatility Alert
Amazon Inc has relatively low volatility with skewness of -0.37 and kurtosis of 0.11. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Amazon's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Amazon's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Amazon Fundamentals Vs Peers
Comparing Amazon's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Amazon's direct or indirect competition across all of the common fundamentals between Amazon and the related equities. This way, we can detect undervalued stocks with similar characteristics as Amazon or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Amazon's fundamental indicators could also be used in its relative valuation, which is a method of valuing Amazon by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Amazon to competition |
| Fundamentals | Amazon | Peer Average |
| Return On Equity | 0.24 | -0.31 |
| Return On Asset | 0.0744 | -0.14 |
| Profit Margin | 0.09 % | (1.27) % |
| Operating Margin | 0.11 % | (5.51) % |
| Current Valuation | 2.28 T | 16.62 B |
| Shares Outstanding | 10.6 B | 571.82 M |
| Shares Owned By Insiders | 8.95 % | 10.09 % |
| Shares Owned By Institutions | 65.40 % | 39.21 % |
| Number Of Shares Shorted | 70.76 M | 4.71 M |
| Price To Earning | 83.26 X | 28.72 X |
| Price To Book | 7.88 X | 9.51 X |
| Price To Sales | 3.53 X | 11.42 X |
| Revenue | 637.96 B | 9.43 B |
| Gross Profit | 311.67 B | 27.38 B |
| EBITDA | 68.59 B | 3.9 B |
| Net Income | 59.25 B | 570.98 M |
| Cash And Equivalents | 53.89 B | 2.7 B |
| Cash Per Share | 5.75 X | 5.01 X |
| Total Debt | 130.9 B | 5.32 B |
| Debt To Equity | 1.20 % | 48.70 % |
| Current Ratio | 0.94 X | 2.16 X |
| Book Value Per Share | 27.00 X | 1.93 K |
| Cash Flow From Operations | 115.88 B | 971.22 M |
| Short Ratio | 2.19 X | 4.00 X |
| Earnings Per Share | 5.52 X | 3.12 X |
| Price To Earnings To Growth | 1.79 X | 4.89 X |
| Target Price | 266.48 | |
| Number Of Employees | 1.56 M | 18.84 K |
| Beta | 1.16 | -0.15 |
| Market Capitalization | 2.25 T | 19.03 B |
| Total Asset | 624.89 B | 29.47 B |
| Retained Earnings | 172.87 B | 9.33 B |
| Working Capital | 11.44 B | 1.48 B |
Note: Disposition of 431426 shares by Jeffrey Bezos of Amazon subject to Rule 16b-3 [view details]
Amazon Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Amazon . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Amazon Buy or Sell Advice
When is the right time to buy or sell Amazon Inc? Buying financial instruments such as Amazon Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Amazon in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Volatility ETFs Thematic Idea Now
Volatility ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Volatility ETFs theme has 26 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Volatility ETFs Theme or any other thematic opportunities.
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Check out Amazon Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Is Broadline Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amazon. If investors know Amazon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amazon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.846 | Earnings Share 5.52 | Revenue Per Share | Quarterly Revenue Growth 0.105 | Return On Assets |
The market value of Amazon Inc is measured differently than its book value, which is the value of Amazon that is recorded on the company's balance sheet. Investors also form their own opinion of Amazon's value that differs from its market value or its book value, called intrinsic value, which is Amazon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amazon's market value can be influenced by many factors that don't directly affect Amazon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amazon's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amazon is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amazon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.