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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".

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".

Microsoft (MSFT) earnings preview: high double-digit revenue growth

5:58 pm ET, 15 Jul 2018

Microsoft Corporation (MSFT) is expected to report earnings on July 19 after market close.  The report will be for the fiscal Quarter ending June 2018.  Shares are trading at 101.98, down -0.14%.

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

Investors are eager to hear any updates on the GitHub acquisition.  Last month Microsoft announced that it has entered into an agreement to purchase GitHub for $7.5 billion, financed entirely by Microsoft stock.  GitHub is a community of 28 million software developers who contribute code to more than 85 million open-source software projects. Microsoft has been an avid proponent of GitHub for several years, rising to the top of the list in terms of code commitments to GitHub, and the companies have reportedly had on-and-off discussions about an acquisition for the past several years. 

Although this deal is roughly one fourth the size of Microsoft’s 2016 acquisition of LinkedIn, GitHub will provide unique opportunities for Microsoft Azure customers.  Management expects GitHub to be accretive to adjusted operating income in fiscal 2020.

Microsoft Corporation has a history of beating analysts’ earnings estimates. In the past four quarters, the company: 

  • Beat analyst EPS estimates by 27 cents ($.98 actuals vs. $.71 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 12 cents ($.84 actuals vs. $.72 forecast) in FQ1’18;
  • Beat analyst EPS estimates by 10 cents ($.96 actuals vs. $.86 forecast) in FQ2’18;
  • Beat analyst EPS estimates by 10 cents ($.95 actuals vs. $.85 forecast) in FQ3’18.

For FQ4’18, EPS is expected to grow by 9% year-over-year to $1.07, while revenue is expected to grow 18% year-over-year to $29.17 billion.  

Over the last month, Microsoft Corporation (MSFT) returned +0.92%.

Microsoft Corporation (MSFT) average analyst price target ($111.76) is 9.59% above its current price ($101.98).

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

Microsoft is one of the most important cloud computing firms in the world. Azure, the firm’s public cloud service, has established itself as the number-two player in the space behind Amazon, and the platform should continue to garner significant user growth as Microsoft leverages Azure-hosted software such as Office 365 and Dynamics 365. 

Public cloud represents a monumental opportunity for Microsoft as new workloads increasingly shift to the cloud, and the firm has curated a rich set of software and tools that will help keep developers in the ecosystem. The rise of Azure should help make up for any potential erosion in the firm’s legacy Servers and Tools businesses, as many of those spending buckets shift to the cloud. 

Unitedhealth Group (UNH) earnings preview: expect strong revenue growth

4:49 am ET, 13 Jul 2018

UnitedHealth Group Incorporated (UNH) is expected to report earnings on July 17 before market open.  The report will be for the fiscal Quarter ending June 2018. Shares are trading at 254.59, down -0.37%.

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

The market is watching out for new emerging competition from Amazon.  Two weeks ago, Amazon announced it will purchase mail-order pharmacy startup PillPack. This move will give Amazon a foothold within the pharmaceutical supply chain and was the most logical step for the online conglomerate to make as we believed retail pharmacy was going to be the easiest segment of the pharmaceutical supply chain for Amazon to enter. 

We believe it will be tough for the Amazon to create any major disruption within the healthcare space given the insurance dynamics that drive the market.  From our perspective, any new competitor will need to deal with the large and powerful customers. Despite what some market participants believe, the true end customer in the pharmaceutical space is not the consumer of drugs, but rather the insurer/employer/government that pays for the health benefits of the consumer. 

UnitedHealth possesses material competitive advantages that should allow it to produce outsized economic profits over an extended period. While the business outlook for US health insurers is filled with uncertainty, United has built itself into a powerful all-encompassing healthcare player we believe will be a dominant force over the next several decades. 

United has constructed its Optum division into one of the most powerful healthcare-services players and has positioned the firm advantageously for the long term. With the acquisition of Catamaran in mid-2015, United has built its PBM operations into a major force in the pharmaceutical market. From our perspective, OptumRx will be a strong value driver for United over the next several years.

Unitedhealth Group, Inc. has a history of beating analysts’ earnings estimates. In the past four quarters, the company: 

  • Beat analyst EPS estimates by 8 cents ($2.46 actuals vs. $2.38 forecast) in FQ2’17;
  • Beat analyst EPS estimates by 9 cents ($2.66 actuals vs. $2.57 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 8 cents ($2.59 actuals vs. $2.51 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 13 cents ($3.04 actuals vs. $2.91 forecast) in FQ1’18.

For FQ2’18, EPS is expected to grow by 23% year-over-year to $3.03, while revenue is expected to grow 12% year-over-year to $56.11 billion.  

Over the last month, UnitedHealth Group Incorporated (UNH) returned +0.32%.

UnitedHealth Group Incorporated (UNH) average analyst price target ($273.00) is 7.23% above its current price ($254.59).

For the latest price and information on UnitedHealth Group Incorporated, please visit Finstead and search for "UNH price" or "UNH news".

Red Hat (RHT) earnings preview: what to expect?

7:33 am ET, 21 Jun 2018

On Thursday, June 21, after the closing bell Red Hat, Inc. (RHT) is announcing its Q1'19 earnings.  Red Hat shares are now trading at $172, up 0.82%.  What can you expect from RHT earnings?  What will be the biggest RHT stock news?  

For the first quarter, the company is expected to make $807 million in revenue, a 19% increase over last year's first quarter.   The consensus Earnings Per Share (EPS) is $0.68, representing a 23% year-over-year increase.

RedHat has a strong history of growth.    Both revenue and EPS have grown double-digit in the past 8 quarters.  

The company has also massively exceeded Wall Street analyst expectations.  In the most recent quarter, the company beat the Wall Street consensus EPS by 11 cents, 14% above what the analysts had predicted.

Red Hat's growth is predicated on its strong partner base, which includes companies such as Google Cloud Platform, Microsoft Azure and Amazon Web Services, IBM and Dell.  Those partnerships are helping Red Hat sell its cloud-based technologies and products; management expects the partner base to drive 80% of new bookings in the near term.

Over the last couple of years, Red Hat acquired a number of startups: CoreOS, Permabit, Codenvy, 3scale, Ansible, FeedHenry, eNovance, Inktank, and Codenvy. The company’s acquisitions that are now integrated with its mainstream business have expanded its product portfolio into new segments, such as hybrid cloud computing, cloud management, OpenShift, OpenStack, and storage.

What drives Red Hat's growth, in particular, is OpenShift.  The market for OpenShift is expanding rapidly.  Another driving force for the quarter is Red Hat’s containerized application offering.

Over the last month, Red Hat, Inc. (RHT) returned +4.51%.

Red Hat, Inc. (RHT) forward P/E ratio is 43.65, and it’s high compared to its industry peers’ P/E ratios.

Red Hat, Inc. (RHT) average analyst price target ($168.45) is -1.28% below yesterday's close-of-business price ($170.64).  The RHT stock forecast does seem particularly bullish at this point. 

For the latest price and information on Red Hat, Inc., please visit Finstead and search for "RHT price" or "RHT news".

Alphabet (Google), Apple, Amazon or Facebook: who will win the race?

1:59 am ET, 08 May 2018

This past weekend we asked stock investors on Twitter: which company among the tech giants (Google / Alphabet, Apple, Amazon or Facebook) will outgrowth the competition?  We got some pretty insightful responses from our Twitter audience and are sharing with you their growth predictions in this Finstead Bites post.

Our Twitter poll shows, investors feel more optimistic about Alphabet (Google) and Amazon, and less optimistic about Facebook and Apple when it comes to those companies' growth prospects. 

Here is the poll question, verbatim: 

đź’ˇWhich company do you think will grow the most in the next 5 years? (To clarify: by growth, I mean market cap growth.)

And here are the responses:  


Buy-side stock analysts, on the other hand, do not see as much stock price upside for Amazon and envision a greater upside for Facebook.  This is somewhat understandable, given Facebook's recent snafu caused by user data leak.  

We consulted Finstead to find out  price target upside for each of those stocks (e.g., searched for "GOOGL upside")--and here is what we found out:

  • GOOGL price target upside is 21.09%.
  • FB price target upside is 25.68%.
  • AAPL price target upside is 3.73%.
  • AMZN price target upside is 3.96%.

The investors we polled on Twitter feel optimistic about Alphabet (Google) for the following reasons:

  • Alphabet's history of execution is unparalleled... it has made significant investments to diversify its revenues, and the effort is paying off.
  • Online and mobile video consumption is going through the roof and Alphabet remains strongly positioned here with YouTube. In its race to target TV ad dollars, Alphabet allowed Nielsen and comScore tagging of YouTube videos to determine the effectiveness of YouTube vs (compared to TV ads)--and YouTube is winning thus far.
  • Android’s dominant global market share of smartphones leaves Google well positioned to continue generating top-line growth as search traffic shifts from desktop to mobile.

Comparing Alphabet and Amazon, it's important to note that those two are still fundamentally different businesses.  While they compete in many areas, they focus on different things.  

The two companies are in the same range based on the market capitalization.  However, Amazon employs a lot more people (over 340,000) than Alphabet (78,000+).  Amazon generates more revenue than Alphabet ($178B vs.  $111B), is growing significantly faster (38% vs. 24%), but is also less profitable (1.7% vs.  11.42%). 

For a detailed comparison of the two companies, please visit Finstead and type AMZN vs. GOOGL.  

3 reasons why Amazon (AMZN) may become the first trillion-dollar company

12:13 am ET, 27 Apr 2018

Upon releasing fantastic quarterly results, investors are wondering whether Amazon will become the first trillion-dollar company.

Amazon is increasing the price for Prime, as it saw strong gains from its retail segment. This is partly because of Whole Foods, which it acquired last year.

Retail sales increased 46% year-on-year to $30.7 billion this quarter.  Analysts forecasted that the retail segment in North America would have an operating income of $660 million in the quarter.

Now analysts think that the North American segment could see a surge in coming quarters from the Prime subscription service.

Another impressive figure: Amazon Web Services grew 49% to $5.4 billion.  This level of growth is astounding for a company that generates over $5 billion from infrastructure-as-a-service.

The cloud business had operating income of $1.4 billion in the quarter, representing a margin of 26%.  

The third reason why analysts are so ecstatic about Amazon is its burgeoning advertising business. Amazon wants to be #3 in the advertising space--and it's making some great investments towards this goal.  

Among the other notable results: Intel topped Wall Street's revenue expectations, which sent its own stock soaring.

Over the last year, AMZN returned +66.94%. This return is higher than Catalog & Mail Order Houses sector (43.27%), Services industry (10.93%), and S&P 500 (11.71%).

The check the latest news and stock analysis on Amazon, visit Finstead and type "AMZN news" or "AMZN buy or sell".  

Netflix (NFLX): Has The Stock Peaked?

11:56 am ET, 11 Apr 2018

The Netflix stock (NASDAQ: NFLX) spiked around 4% today in mid-day trading. The stock witnessed a 60% year-to-date spike (visit Finstead and type “NFLX YTD return” to get the latest return).

What should you know about this stock?

The company’s exciting original content makes the stock more attractive.   Since Netflix is capable of delivering outstanding services in the competitive market, investors are getting more optimistic about sustaining growth.

Its resilience and the lack of dependency on trade agreements have made the stock even more appealing to investors.  Despite the prospect of a trade war between the US and China, the stock has remained unaffected.

Netflix outperformed its rivals such as Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) and Apple (NASDAQ: AAPL).

The growth is evident from the rising number of subscribers throughout the world. It is a cheaper substitute for TV.  Netflix consistently recorded a 6% average growth rate after hitting more than 100 Million paid subscribers in the second quarter of last year.

The Netflix stock surpassed previous quarter's EPS with a remarkable 650%  margin growth. The company recorded a 320% average year-over-year EPS growth since the fourth quarter of 2016, which is a sharp contrast to -15% margin decline from the third quarter of 2016. The margin expansion is a clear indication that the investment in expanding subscriber volume is paying off.

Can the stock sustain the momentum? Per Finstead Research, Netflix has the average price target of $266.

Netflix has a fairly high valuation compared to its peers. Its P/E ratio lags only that of AMZN.

The high Short Share of Float indicates potential volatility in the upcoming days.

Amazon.com (AMZN): Still Exposed To Government Pressure?

5:26 pm ET, 29 Mar 2018

When Axios reported President's Trump's intentions to check Amazon's compliance with the federal anti-trust law, its shares saw a dip of around 3% earlier today.  This caused a loss of around $50 billion in shareholders’ value. 

However, Sarah Huckabee Sanders said later today the Trump administration isn’t considering any changes in policy directed at Amazon. 

The altercation between Trump and the Amazon founder Jeff Bezos is likely to continue.  

President Trump is “obsessed” with regulating the e-commerce behemoth.

Bezos accused President Trump about faking charitable contributions.   He claims that Amazon is the leader in tax contributions in all states.  

As the company is building its second headquarters, estimated to cost $5 Billion, the promise is that Amazon will create 50,000 new jobs in the 20 selected locations.

It’s obvious that Amazon is a huge power force in the US economy, and it’s being increasingly scrutinized the Government. 

What are the chances for the stock price to increase?  And what is the price forecast?  

Per Finstead Research, the average target price is almost $1664. The stock has a 17% upside.  Note a wide spread between the minimum and maximum price target. 

The valuation of Amazon’s stock is the highest among its peers, based on forward P/E ratio alone.


Amazon.com, Inc. (AMZN) Stock Guide

Updated at: 11:00 am ET, 17 Sep 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. What is AMZN stock forecast (i.e., prediction)?
3. AMZN buy or sell? What is AMZN Finny Score?
4. What are the reasons to buy AMZN? Why should I buy AMZN stock?
5. What are the reasons to sell AMZN? Why should I sell AMZN stock?
6. 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.

Analyst Predictions

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

Based on AMZN analyst price targets, AMZN stock forecast is $3,661.68 (for a year from now). That means the average analyst price target for AMZN stock is $3,661.68. The prediction is based on 47 analyst estimates.

The low price target for AMZN is $2,646.00, while the high price target is $4,200.00.

AMZN analyst rating is Buy.

Analysis

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

#{finnyScore:80}Our quantitative analysis shows 4 reasons to buy and 1 reason to sell AMZN, resulting in Finny Score of 80.

4. 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 ($3661.68) is above its current price ($3008.92). 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.

5. 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 forward P/E ratio is 79.29, which is high compared to its industry peers’ P/E ratios. See AMZN forward P/E ratio chart.

Key Stats

6. 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 $3,218.74
Average Price Target / Upside $3,725.31 / 15.74%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Specialty Retail
Sector Consumer Cyclical
Number of Employees 647,500
Market Cap $1,684.85B
Forward P/E Ratio 75.81
Price/Book Ratio 5.24
Revenue (TTM) $321.78B
YoY Quarterly Revenue Growth 40.20%
Profit Margin 4.10%

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