Amazon Inc Stock Buy Hold or Sell Recommendation
AMZN Stock | USD 180.38 0.55 0.31% |
Given the investment horizon of 90 days and your way above-average risk tolerance, our recommendation regarding Amazon Inc is 'Strong Hold'. Macroaxis provides Amazon buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Amazon positions. The advice algorithm takes into account all of Amazon's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Amazon's buy or sell advice are summarized below:
Real Value 149.75 | Target Price 160.61 | Hype Value 180.96 | Market Value 180.38 | Naive Value 182.2 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Amazon Inc given historical horizon and risk tolerance towards Amazon. When Macroaxis issues a 'buy' or 'sell' recommendation for Amazon Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
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 | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | 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 | |
The company currently holds 135.61 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. Debt can assist Amazon until it has trouble settling it off, either with new capital or with free cash flow. So, Amazon's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Amazon Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Amazon to invest in growth at high rates of return. When we think about Amazon's use of debt, we should always consider it together with cash and equity. | |
Amazon Inc has a strong financial position based on the latest SEC filings | |
About 63.0% of Amazon shares are held by institutions such as insurance companies | |
Latest headline from finance.yahoo.com: Amazons senior employees may not get a cash pay raise this year |
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 | 0.26 | Value At Risk | -2.15 | Potential Upside | 2.66 | Standard Deviation | 1.62 |
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 is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Amazon Inc backward and forwards among themselves. Amazon's institutional investor refers to the entity that pools money to purchase Amazon's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | Bank Of America Corp | 2023-12-31 | 81 M | Capital Research Global Investors | 2023-12-31 | 80.2 M | Wellington Management Company Llp | 2023-12-31 | 77.8 M | Bank Of New York Mellon Corp | 2023-12-31 | 70.4 M | Legal & General Group Plc | 2023-12-31 | 68.2 M | Nuveen Asset Management, Llc | 2023-12-31 | 66.3 M | Jennison Associates Llc | 2023-12-31 | 56.4 M | Charles Schwab Investment Management Inc | 2023-12-31 | 51.9 M | Royal Bank Of Canada | 2023-12-31 | 51.9 M | Vanguard Group Inc | 2023-12-31 | 771.1 M | Blackrock Inc | 2023-12-31 | 627.2 M |
Amazon Cash Flow Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Change To Inventory | (3.3B) | (2.8B) | (9.5B) | (2.6B) | 1.4B | 1.5B | |
Change In Cash | 4.2B | 6.0B | (5.9B) | 17.8B | 19.6B | 20.6B | |
Free Cash Flow | 21.7B | 25.9B | (14.7B) | (16.9B) | 32.2B | 33.8B | |
Depreciation | 21.8B | 25.3B | 34.3B | 41.9B | 48.7B | 51.1B | |
Other Non Cash Items | (85M) | (2.7B) | (14.2B) | 17.0B | (748M) | (785.4M) | |
Capital Expenditures | 16.9B | 40.1B | 61.1B | 63.6B | 52.7B | 55.4B | |
Net Income | 11.6B | 21.3B | 33.4B | (2.7B) | 30.4B | 31.9B | |
End Period Cash Flow | 36.4B | 42.4B | 36.5B | 54.3B | 73.9B | 77.6B | |
Investments | (9.1B) | (22.2B) | (773M) | 29.0B | (48.1B) | (45.7B) | |
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 Internet & Direct Marketing 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 NYSE Composite | 0.1 | |
β | Beta against NYSE Composite | 1.22 | |
σ | Overall volatility | 1.67 | |
Ir | Information ratio | 0.08 |
Amazon Volatility Alert
Amazon Inc has relatively low volatility with skewness of 1.55 and kurtosis of 6.34. 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 Implied Volatility
Amazon's implied volatility exposes the market's sentiment of Amazon Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Amazon's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Amazon stock will not fluctuate a lot when Amazon's options are near their expiration.
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 | 0.17 | -0.31 |
Return On Asset | 0.0465 | -0.14 |
Profit Margin | 0.05 % | (1.27) % |
Operating Margin | 0.08 % | (5.51) % |
Current Valuation | 1.92 T | 16.62 B |
Shares Outstanding | 10.39 B | 571.82 M |
Shares Owned By Insiders | 9.18 % | 10.09 % |
Shares Owned By Institutions | 62.84 % | 39.21 % |
Number Of Shares Shorted | 72.82 M | 4.71 M |
Price To Earning | 83.26 X | 28.72 X |
Price To Book | 9.26 X | 9.51 X |
Price To Sales | 3.25 X | 11.42 X |
Revenue | 574.78 B | 9.43 B |
Gross Profit | 225.15 B | 27.38 B |
EBITDA | 88.29 B | 3.9 B |
Net Income | 30.43 B | 570.98 M |
Cash And Equivalents | 53.89 B | 2.7 B |
Cash Per Share | 5.75 X | 5.01 X |
Total Debt | 135.61 B | 5.32 B |
Debt To Equity | 1.20 % | 48.70 % |
Current Ratio | 0.94 X | 2.16 X |
Book Value Per Share | 19.44 X | 1.93 K |
Cash Flow From Operations | 84.95 B | 971.22 M |
Short Ratio | 1.74 X | 4.00 X |
Earnings Per Share | 2.90 X | 3.12 X |
Price To Earnings To Growth | 2.43 X | 4.89 X |
Target Price | 206.02 | |
Number Of Employees | 1.52 M | 18.84 K |
Beta | 1.17 | -0.15 |
Market Capitalization | 1.87 T | 19.03 B |
Total Asset | 527.85 B | 29.47 B |
Retained Earnings | 113.62 B | 9.33 B |
Working Capital | 7.43 B | 1.48 B |
Note: Bona fide gift to David Zapolsky of 2800 shares of Amazon subject to Section 16 [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.
Accumulation Distribution | 510728.0 | |||
Daily Balance Of Power | 0.2254 | |||
Rate Of Daily Change | 1.0 | |||
Day Median Price | 180.48 | |||
Day Typical Price | 180.45 | |||
Price Action Indicator | 0.17 | |||
Period Momentum Indicator | 0.55 |
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.2021 | 2022 | 2023 | 2024 (projected) | Other Current Liabilities | 35.9B | 47.7B | 45.8B | 48.1B | Total Assets | 420.5B | 462.7B | 527.9B | 554.2B |
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 Business Supplies Thematic Idea Now
Business Supplies
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Supplies theme has 22 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 Business Supplies 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. Note that the Amazon Inc information on this page should be used as a complementary analysis to other Amazon's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Complementary Tools for Amazon Stock analysis
When running Amazon's price analysis, check to measure Amazon's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Amazon is operating at the current time. Most of Amazon's value examination focuses on studying past and present price action to predict the probability of Amazon's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Amazon's price. Additionally, you may evaluate how the addition of Amazon to your portfolios can decrease your overall portfolio volatility.
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Is Amazon's industry 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 50.693 | Earnings Share 2.9 | Revenue Per Share 55.783 | Quarterly Revenue Growth 0.139 | Return On Assets 0.0465 |
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.