Amazon (AMZN) earnings: bearish near-term sentiment

6:08 am ET, 24 Oct 2018

Amazon.com, Inc. (AMZN) shares are trading at $1759.24. The company is announcing its quarterly earnings results on Thursday after the market close. What's driving Amazon stock price? What's AMZN stock price forecast?

Amazon is the world’s leading online retailer. Lately, the stock has performed well: it generated a return of 79% in the past year. Management revenue guidance for the third quarter is $54 billion to $57.5 billion, a growth of 23-31% year-on-year.

Investors love the stock because of the company's growth, network effects, and operational efficiencies. On the other hand, bearish investors feel that the stock is overvalued now. Last quarter’s revenue rose 39% to $52.90 billion and earnings per share came at $5.07 compared to $0.40 for the same period last year. Amazon Web Services (AWS) revenue grew 49%.  AWS segment revenue is growing at a remarkable pace and profits are also increasing.

The third-quarter results will be released after market close on October 25, 2018.  Analysts expect the company to earn $3.12 per share on revenue of $57.08 billion. The company beats analyst estimates three times in the previous four quarters.

What is the sentiment towards the AMZN stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Amazon.com, Inc. (AMZN) returned -10.12%.

Amazon.com, Inc. (AMZN) forward P/E ratio is 70.64, and it’s high compared to its industry peers’ P/E ratio.

Amazon.com, Inc. (AMZN) average analyst price target ($2,142.64) is 19.79% above its current price ($1,788.61).

For the latest price and information on Amazon.com, Inc., please visit Finstead and search for "AMZN price" or "AMZN news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Hasbro (HAS) stock: positive sentiment ahead of the earnings

12:50 am ET, 22 Oct 2018

Hasbro, Inc. (HAS) shares are trading at $98.04. The company is announcing its quarterly earnings results on Monday before the market opens. What's driving Hasbro stock price? What's HAS stock price forecast?

Hasbro is a toy and board game company with leading brands like Transformers, Monopoly, and Nerf. The Company’s Franchise Brands account for 50% of its revenues. Earlier this year it bought Power Rangers for $522 million.

Investors are bullish on the company because of its potential in the digital gaming sector. On the other hand, some investors worry that the Company’s dependence on Amazon might reduce its profits. Last quarter's revenue fell 7% to $904.46 million, mainly because of Toys R liquidation. Earnings per share came at $0.48 compared to $0.53 for the same period last year.

Third-quarter results will be released before market open on October 22, 2018. Analysts expect the company to earn $2.26 per share on revenue of $1.72 billion.

What is the sentiment towards the Hasbro stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Hasbro, Inc. (HAS) returned -4.44%.

Hasbro, Inc. (HAS) short share of float is 8.19%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Hasbro, Inc. (HAS) average analyst price target ($108.80) is 10.67% above its current price ($98.31).

For the latest price and information on Hasbro, Inc., please visit Finstead and search for "HAS price" or "HAS news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Costco (COST): trending positive, despite the competition from Amazon

4:26 pm ET, 04 Oct 2018

Costco Wholesale Corporation (COST) shares are trading at $225.71. The company is announcing its quarterly earnings results on Thursday after the market close. What's driving COST stock price? What's COST stock price forecast?

Costco Wholesale operates membership warehouses globally. Lately, the stock has performed well; it yielded a return of 43% in the past year.

Investors are buying the shares as the company is fundamentally strong. On the other hand, some investors feel that the company will face tough competition from Amazon. Last quarter’s revenue rose 12% to $31.59 billion and earnings per share came at $1.70 compared to $1.59 for the same period last year.

The fourth-quarter results will be released after market close on October 04, 2018. Analysts expect the company to earn $2.36 per share on revenue of $44.26 billion. The company beat analyst estimates in the previous four quarters.

What is the sentiment towards the COST stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Costco Wholesale Corporation (COST) returned +2.72%.

Costco Wholesale Corporation (COST) forward P/E ratio is 30.45, and it's high compared to its industry peers' P/E ratios.

Costco Wholesale Corporation (COST) average analyst price target ($227.63) is -3.04% below its current price ($234.76).

For the latest price and information on Costco Wholesale Corporation, please visit Finstead and search for "COST price" or "COST news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Salesforce.com (CRM) stock: what's the sentiment?

1:36 pm ET, 29 Aug 2018

Salesforce.com Inc (CRM) shares are trading at 154.45, up 1%. The company announces earnings on August 29 after the market close.  What's driving CRM stock price? What's CRM stock price forecast?

Salesforce has been on an acquisition spree, and the M&A tempo is still going steady.  The company closed its $6.5 billion acquisition of MuleSoft, a major applications integration player.   In addition, Salesforce has been expanding its international operations and creating partnership the likes of Amazon and Alphabet.  

MuleSoft, which diluted CRM's earnings, contributed heavily in Salesforce’s raised forecast in its last earnings report. $315 million out of $415 million in Salesforce's raised outlook for the year is coming from MuleSoft.

On today's earnings call, the company is likely to focus on its annual Dreamforce convention in late September. The conference will take over the city of San Francisco from September 24 until September 28. 

What is the sentiment towards the CRM stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is positive;
  • The mid-term sentiment (3-6 months) is positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Salesforce.com Inc (CRM) returned +4.32%.

Salesforce.com Inc (CRM) average analyst price target ($147.48) is -3.16% below its current price ($152.30).

For the latest price and information on Salesforce.com Inc, please visit Finstead and search for "CRM price" or "CRM news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Hewlett Packard Enterprise (HPE): limited revenue growth opportunities?

6:13 am ET, 28 Aug 2018

Hewlett Packard Enterprise Company (HPE) shares are trading at $16.53 prior to the earnings today. What's driving HPE's stock price? What's HPE's stock price forecast?

After its separation from HP Inc., HP Enterprise continued on the path of rapid divestitures, spinning out its enterprise services and software units along with other businesses and equity investments. This transformation has allowed the company to beef up its balance sheet and refocus its organization on the core traditional, on-premise hardware business, which consists of servers, storage, and networking--the mainstay categories of IT infrastructure.

However, traditional IT infrastructure is threatened by the growth of cloud computing. The recent meteoric growth of cloud-derived revenue of Amazon’s AWS and Microsoft’s Azure and stagnation and decline across all HPE segments underscore the challenges traditional IT vendors are facing. As IT departments accelerate the migration of their infrastructure to the cloud, HPE will be forced to compete, often times on price, with larger rivals such as Dell, Cisco, and Huawei for what is left of on-premise.

The key question investors will have today is, how much revenue growth will HPE drive?  HP Enterprise's second-quarter net revenue rose 10% year over year to $7.5 billion, which was largely viewed as a strong performance.  Management attributed the revenue growth to overall strong IT spend and the company's competitive pricing. 

What is the sentiment towards the HPE stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

Hewlett Packard Enterprise Company (HPE) forward P/E ratio is 10.38, and it’s low compared to its industry peers’ P/E ratios.

Hewlett Packard Enterprise Company (HPE) average analyst price target ($19.46) is 20.42% above its current price ($16.16).

For the latest price and information on Hewlett Packard Enterprise Company, please visit Finstead and search for "HPE price" or "HPE news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Best Buy (BBY): looking solid before the earnings?

6:08 am ET, 27 Aug 2018

Best Buy Co., Inc. (BBY) shares are trading at $82.50.  The retailer is reporting its quarterly earnings on Tuesday morning, August 28, before the market opens.  What should investors know about the BBY stock? What's BBY stock price forecast?

Investors will be watching out for Best Buy's operational efficiency improvements under the new CEO Hubert Joly.  The company's Renew Blue plan is shooting for accelerated online sales growth, improved multichannel customer experience, optimizing store square footage and US real estate portfolio. The company is also focused on gaining supply chain efficiencies, and cutting unnecessary selling, general, and administrative costs--necessary to compete in an evolving consumer electronics retail market. 

Best Buy reaffirmed its position as a reliable operator in the evolving retail marketplace, following up its strong holiday results with 7.1% comps showing strength across several categories. Best Buy isn't just benefiting from favorable product cycles--mobile, appliances, computing, tablets, and smart home were called out as key drivers--and a healthy U.S. housing market, but also an improved in-store and online customer experience. 

Best Buy can carry much of its current momentum into the second half via its Fire TV-enabled television partnership with Amazon and total tech support rollout, setting the stage to exceed its unchanged fiscal 2019 targets, including revenue of $41 billion-$42 billion, and operating margin of 4.5%--flat versus fiscal 2018. 

What is the sentiment towards the BBY stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is neutral. 

Best Buy (BBY) short share of float is 8.96%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Best Buy (BBY) average analyst price target ($74.44) is -9.34% below its current price ($82.11).

For the latest price and information on Best Buy Co., Inc., please visit Finstead and search for "BBY price" or "BBY news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Target (TGT) earnings: revenue growth accelerating or not?

3:15 pm ET, 21 Aug 2018

Target Corporation (TGT) shares are trading at 83.27.  The company is scheduled to announce its second-quarter results on August 22 before the opening bell.  What's driving TGT stock price? What's TGT stock price forecast?

Analysts are keeping an eye peeled for market share gains after strong Walmart results last week.  

Target is an iconic brand that's under threat from considerably larger and more powerful competitors Amazon and Walmart. The company differentiates itself through signature categories (apparel and wellness) that carry higher margins and faster growth rates than other areas of its business.  

The signature categories represent one-third of total revenue, but the company is coming under pressure as consumers shift more to digital retails.  When it comes to e-commerce, Target pales in comparison to both Walmart and Amazon: it generates $4 billion of sales annually through digital versus $23+ billion for Walmart and $60+ billion for Amazon.  Hence, investors are watching out for the company's progress on the e-commerce front.   

Analysts are also going to scrutinize grocery sales at Target.  Target is underperforming in grocery sales (roughly 15% of its total revenue), which explains the gap in revenue per square foot between Target at $300, Walmart at $430, and Costco at $1,100.

What is the sentiment towards the TGT stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is neutral. 

Over the last month, Target Corporation (TGT) returned +8.04%. 

Target Corporation (TGT) short share of float is 5.71%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Target Corporation (TGT) average analyst price target ($76.49) is -8.31% below its current price ($83.42).

For the latest price and information on Target Corporation, please visit Finstead and search for "TGT price" or "TGT news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Amazon (AMZN) earnings preview: keep an eye on new emerging businesses

11:46 am ET, 24 Jul 2018

Amazon.com, Inc. (AMZN) is expected to report earnings on July 26 after market close.  The report will be for the fiscal quarter ending June 2018. Shares are trading at 1799.25, down -0.8%.

What are AMZN earnings expectations?  What news should investors be paying attention to?  

Amazon's acquisition of online/mail-order pharmacy PillPack as a logical way to further its push into the pharma category while offering layers of potential synergies. PillPack, which generated around $100 million in revenue during 2017 according to PitchBook data, distributes presorted medications in personalized packages while offering services such as 24/7 online pharmacist support. From Amazon's perspective, acquiring PillPack could resolve some of the regulatory hurdles the company would face in building out a larger mail-order prescription business (PillPack CEO TJ Parker has previously stated the company is licensed across the continental United States). 

PillPack also offers a new source of customer data that could be utilized for future cross-selling opportunities (both online and in physical stores) or the new Amazon/JP Morgan Chase/Berkshire Hathaway partnerships, build out new Prime membership pricing tiers or other subscription-based services, as well as inroads into other business-to-consumer verticals (including digital health platforms and wearable technologies).

As an increasingly vital distribution channel for consumer product vendors, Amazon commands favorable pricing terms to traditional rivals, which will help drive recurring site traffic. Even with more retailers looking to expand online, Amazon will maintain its consumer proposition through the convenience of Amazon Prime's expedited shipping, expanding digital content library, and new partnerships coming out of its Whole Foods acquisition. 

Aided by almost 400 million estimated global active users, more than 100 million Prime members, and recent fulfillment infrastructure, technology, and content investments, Amazon is likely to reshape retail, digital media, enterprise software and other categories for years to come. 

Amazon.com Inc. has a mixed history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Missed analyst EPS estimates by 100 cents ($.40 actuals vs. $1.40 forecast) in FQ2’17;
  • Beat analyst EPS estimates by 51 cents ($.52 actuals vs. $.01 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 30 cents ($2.15 actuals vs. $1.85 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 205 cents ($3.27 actuals vs. $1.22 forecast) in FQ1’18.

For FQ2’18, EPS is expected to grow by 523% year-over-year to $2.49, while revenue is expected to grow 41% year-over-year to $53.46 billion.  

Amazon.com (AMZN) forward P/E ratio is 89.71, and it’s high compared to its industry peers’ P/E ratios.

Amazon.com (AMZN) average analyst price target ($1,877.49) is 4.35% above its current price ($1,799.25).

For the latest price and information on Amazon.com, please visit Finstead and search for "AMZN price" or "AMZN news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

eBay (EBAY) earnings preview: can the company catch up with Amazon?

6:13 pm ET, 15 Jul 2018

eBay Inc. (EBAY) is expected to report earnings on July 18 after market close.  The report will be for the fiscal quarter ending June 2018. Shares are trading at 36.98, down -0.16%.

What are EBAY earnings expectations?  What news will the market be watching out for?  

EBay's first-quarter update offered some good and some bad news. On one hand, platform enhancements appear to be resonating with sellers.  Both Gross Merchandise Value (GMV) and revenue were up 7%. However, with a deceleration in active buyers (up 4% to 171 million, versus 5% growth during 2017), questions about eBay's ability to sustain its growth linger.

EBay's site enhancements is a clear positive, and brand marketing initiatives paired with future marketplace plans such as voice/image search, VR/AR functionality, and simplified returns should make the platform more attractive for sellers.  From our perspective, GMV growth in the mid- to high single digits is a realistic assumption for eBay the next five years--especially with Amazon aggressively pursuing small and midsize business sellers and many large retailers reaping benefits from new omnichannel and fulfillment strategies.

eBay has also announced plans to partner with Netherlands-based Adyen to simplify the end-to-end payment process on its Marketplace platform with primary goals of lower costs for sellers (charging a single fee for marketplace and payment services) while offering buyers a streamlined process across a wider range of payment options.  This and other marketplace enhancements could make eBay more attractive for vendors looking to diversify beyond Amazon.  

eBay Inc., has a history of meeting analysts’ earnings estimates.  In the past four quarters, the company: 

  • Delivered on the analyst EPS estimate ($.45 actuals vs. $.45 forecast) in FQ2’17;
  • Delivered on the analyst EPS estimate ($.48 actuals vs. $.48 forecast) in FQ3’17;
  • Delivered on the analyst EPS estimate ($.59 actuals vs. $.59 forecast) in FQ4’17;
  • Delivered on the analyst EPS estimate ($.53 actuals vs. $.53 forecast) in FQ1’18.

For FQ2’18, EPS is expected to grow by 16% year-over-year to $.52, while revenue is expected to grow 15% year-over-year to $2.67 billion.  

Over the last month, eBay Inc. (EBAY) returned -8.67%.

eBay Inc. (EBAY) forward P/E ratio is 13.73, and it’s low compared to its industry peers’ P/E ratios.

eBay Inc. (EBAY) average analyst price target ($48.34) is 30.72% above its current price ($36.98).

For the latest price and information on eBay Inc., please visit Finstead and search for "EBAY price" or "EBAY news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Amazon.com, Inc. (AMZN) Stock Guide

Updated at: 1:35 am ET, 12 Aug 2020

Before we start: if you're looking for AMZN stock price, you can quickly find it out by visiting Finny and typing "AMZN quote". If you're looking for a quick scoop on AMZN stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AMZN". You'll get all this info in one place. Or you can just type "AMZN news" to get the latest stock news.

Looking to buy or sell Amazon.com, Inc. (AMZN)? Interested in getting the full scoop on AMZN, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AMZN stock guide, we'll address key questions about AMZN, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are AMZN earnings?
2. When is AMZN earnings date?
3. What is AMZN stock forecast (i.e., prediction)?
4. AMZN buy or sell? What is AMZN Finny Score?
5. What are the reasons to buy AMZN? Why should I buy AMZN stock?
6. What are the reasons to sell AMZN? Why should I sell AMZN stock?
7. What are AMZN key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are AMZN earnings?

AMZN trailing 12-month earnings per share (EPS) is $26.04.

2. When is AMZN earnings date?

AMZN earnings date is October 22, 2020.

Analyst Predictions

3. What is AMZN stock forecast (i.e., prediction)?

Based on AMZN analyst price targets, AMZN stock forecast is $3,611.39 (for a year from now). That means the average analyst price target for AMZN stock is $3,611.39. The prediction is based on 47 analyst estimates.

The low price target for AMZN is $2,525.00, while the high price target is $4,200.00.

AMZN analyst rating is Buy.

Analysis

4. AMZN buy or sell? What is AMZN Finny Score?

#{finnyScore:57}Our quantitative analysis shows 4 reasons to buy and 3 reasons to sell AMZN, resulting in Finny Score of 57.

5. What are the reasons to buy AMZN? Why should I buy AMZN stock?

Here are the reasons to buy AMZN stock:

  • Amazon dominates North American online retail with an estimated gross merchandise value of over $300 billion. Product selection, great user experience, bargains and customer feedback have helped the company build a strong position for itself in the e-commerce market.
  • With more than half of the world's Internet users coming from developing markets, Amazon has promising international growth opportunities, including Europe, Japan, and India. Amazon has been introducing several new products for international markets, and expanding Prime to strengthen its foothold in international markets.
  • Amazon keeps its retail business very hard to beat on price, choice, and convenience with the help of a solid loyalty system represented by the Prime program. The company continues to push advantages exclusively to Prime members, thus encouraging them to spend more on Amazon.
  • Amazon’s strategy of gradually merging online and offline retail looks promising. It will not only reshape the retail landscape but also help it fend off competition. It has added online and offline features to its bookstores and is going the same way with innovations such as drive-in-grocery delivery service (AmazonFresh Pickup - order groceries online and collect them from a store nearby) and “cashier-less” stores (Amazon Go – the company’s first brick-and mortar grocery store).
  • Amazon is the leading provider of cloud infrastructure as a service to enterprise customers. The Amazon Web Services (AWS) business is growing at over 40% year over year. Even more encouraging is the fact that AWS generates much stronger margins than the traditional retail business, which should remain a positive for the company’s profitability as AWS continues to grow in the mix.
  • Alexa powered Echo devices are going great guns and help the Company sell products and services. Artificial intelligence (AI) driven Alexa has already been integrated into a host of everyday devices for the digital home, which has converted the nascent smart home market into a potential area of growth in a very short time. Alexa is equipped with tens of thousands of skills and can connect to any stream of business.
  • Alexa is an important method for Amazon to collect householder information, since it is used to listen to commands and store everything that it hears in the cloud. Amazon is racing to build an ecosystem around Alexa; it has taken an early lead over Google's smart assistant and Microsoft's Cortana.
  • Amazon is buying companies in markets where it doesn't dominate. In 2017 it acquired a Dubai-based ecommerce giant, Souq.com, which helped establish its presence in countries such as Egypt, Saudi Arabia, and the UAE.
  • Trough the acquisition of natural and organic foods supermarket Whole Foods, Amazon is targeting a considerably large customer base that still prefers to shop at physical stores. This is how Amazon is tacking competition and slow growth in the e-commerce space.
  • Amazon generates strong cash flows. Despite the seasonality in its business and the resultant fluctuation in gross margins, operating margins do not move around that much. This is because of a relatively flexible operating cost structure, which allows the Company to curtail technology and content expenses in particular when margins are impacted by discounts and promotions (e.g., during the holiday season).
  • AMZN quarterly revenue growth was 40.20%, higher than the industry and sector average revenue growth (0.81% and 0.78%, respectively). See AMZN revenue growth chart.
  • AMZN average analyst rating is Buy. See AMZN analyst rating chart.
  • AMZN average analyst price target ($3611.39) is above its current price ($3080.67). See AMZN price target chart.
  • AMZN cash to debt ratio is 0.78, higher than the average industry (0.16) and sector (0.13) cash to debt ratio. See AMZN cash to debt chart.

6. What are the reasons to sell AMZN? Why should I sell AMZN stock?

Let's look at the reasons to sell AMZN stock (i.e., the bear case):

  • Amazon's margin expansion trajectory is likely to be uneven at times, given its global logistics and content investments, new sources of competition, and physical store aspirations.
  • Amazon Web Services faces competition from well-capitalized peers like Microsoft Azure and Google Public Cloud, potentially exposing it to more aggressive price competition and longer-term margin pressures.
  • The competition in online retail is heating up. Traditional retailers have always provided the strongest competition and a number of them are running e-commerce sites as well. Additionally, the increased use of the Internet in both developed and developing economies is attracting other players into the space.
  • Prime’s saturation in the U.S. market is apparent, because Amazon has very high penetration rates in the country. This led management to announce a tiered pricing system, wherein users can try out a monthly subscription if they are unsure about the program or don’t want to pay upfront for the whole year.
  • Most retail businesses tend to be seasonal and Amazon’s is no different. The company’s revenues get a huge boost from the holiday season each year (over 34%). With such a huge contribution from the fourth quarter, there is an obvious drop-off in the first quarter. The dependence on consumer spending makes the business lumpy, increasing the possibility of expectations going awry.
  • AMZN stock price ($3080.67) is close to the 52-week high ($3278.01). Perhaps now is a good time to sell? See AMZN price chart.
  • AMZN forward P/E ratio is 69.59, which is high compared to its industry peers’ P/E ratios. See AMZN forward P/E ratio chart.
  • AMZN Enterprise Value/EBITDA multiple is 40.35, which is high compared to its industry peers’ Enterprise Value/EBITDA ratios. See AMZN Enterprise Value/EBITDA chart.

Key Stats

7. What are AMZN key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AMZN:

Metrics AMZN
Price $3,147.11
Average Price Target / Upside $3,611.39 / 14.75%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Specialty Retail
Sector Consumer Cyclical
Number of Employees 647,500
Market Cap $1,576.81B
Forward P/E Ratio 71.11
Price/Book Ratio 4.9
Revenue (TTM) $321.78B
YoY Quarterly Revenue Growth 40.20%
Profit Margin 4.10%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Use Finny to ask any finance or investment question. Big or small. Personal or general.
Follow Us