$224.92
arrow_drop_up0.83%Is AMZN a Buy or Sell based on AI Analysis?
Fundamental Analysis
Amazon.com (AMZN) is a high-growth stock with a price-to-sales ratio of 3.44, indicating that investors are willing to pay $3.44 for every $1 of the company's revenue. With a market capitalization of $2.13 trillion and a price-to-earnings ratio of 43.2, Amazon's growth potential is reflected in its valuation. The company's return on equity of 22.56% and return on assets of 7.07% demonstrate its ability to generate profits from shareholder equity and assets, respectively. Additionally, Amazon's strong gross margin of 46.98% and net margin of 5.29% suggest efficient cost management and profitability in its operations. Overall, these fundamental indicators highlight Amazon as a high-quality, high-growth investment opportunity. Furthermore, Amazon's revenue growth of 11.83% and net income of $30.42 billion showcase its ability to generate strong top-line growth and profitability. The company's operating margin of 10.96% and free cash flow margin of 5.61% indicate efficient operations and cash flow generation. In addition, Amazon's strong balance sheet with $75.09 billion in cash on hand and a debt-to-equity ratio of 0.61 demonstrates its financial stability and ability to weather economic downturns. With a history of consistent growth and solid financial performance, Amazon remains a top player in the e-commerce and technology sectors, making it an attractive investment option for long-term investors.
Positive Development
Amazon's stock price has shown a consistent upward trend, indicating investor confidence in the company's performance. The company has been making significant investments in its cloud business, which could lead to increased revenue and profitability in the future. AWS has been recognized for its success in generating high margins, which could be an indication of the company's ability to maintain profitability in the long run. The company has been expanding its AI capabilities and is partnering with various organizations to develop and implement AI solutions, which could potentially lead to new revenue streams.
Negative Development
The company's long-term debt to equity ratio is relatively high, indicating that the company is highly leveraged. The company's current ratio is only at 1.0887, indicating that the company may face liquidity issues if it encounters unexpected expenses or cash flow problems. The company's inventory turnover is relatively low, which could indicate inefficiencies in its supply chain and inventory management. The company's price-to-earnings ratio (P/E) is high, indicating that the market may be overvaluing the company's stock.
Technical Analysis
Amazon.com (AMZN) has a technical analysis score of 81, indicating a neutral stance in the market. The stock has shown a slight decrease of 0.2% in both price change and delta price with the current price at $202.18. The company's technical indicators suggest a mix of buying, holding, and selling signals, with one technical buy indicator, five hold indicators (including RSI, MACD, ADX, ROC, and STOCHRSI), and two sell indicators (CCI and WILLR) observed in the past month. The stock's longest resistance price and closest resistance price are not specified, but the longest support price stands at $187.07 with a change of -7.47% and support lasting for 42 days. Moreover, Amazon's technical analysis also highlights key trendline statistics, including the longest trendline slope of 0.04, indicating an upward trend. The longest trendline forecast price is $155.70, forecasted on November 21, 2024, from an initial price of $144.05 on January 4, 2024. Additionally, the stock has experienced a 213-day trendline with a cumulative multiple of 240, suggesting strong long-term growth potential. The company's technical indicators are regularly updated, with the latest information being provided on November 18, 2024, offering investors valuable insights into the stock's performance and potential future price movements.
Conclusion and recommendation
Based on the data provided, Amazon.com (AMZN) appears to be a high-quality stock with strong growth potential. The company's stock price has shown consistent growth over the past year, with a year-to-date price change of 34.85% and a five-year price change of 130.73%. Additionally, Amazon's revenue growth of 11.83% and net income of $30.42 billion demonstrate the company's strong financial position. With an analyst recommendation of "buy" and an analyst forecasted price of $220.48, it is evident that there is optimism surrounding Amazon's future performance in the stock market. In conclusion, Amazon.com is a solid investment option for those looking for long-term growth potential. The company's strong financial performance, consistent revenue growth, and positive analyst recommendations all point to a bright future for the stock. However, as with any investment, it is important for investors to conduct their own research and due diligence before making any decisions. Overall, Amazon.com appears to be a promising investment opportunity for those seeking exposure to a reputable and well-established tech giant in the stock market.