Sign InAmazon Stock Analysis: Technical and Fundamental Evaluation for Investment Potential
Summary
As of June 26, 2023, Amazon's stock is predicted to gravitate around its discounted cash flow value with a potential movement towards the target consensus price, leading to a positive trend, making it an attractive investment option for investors with a long-term investment horizon.
Introduction
Amazon.com, Inc. (NASDAQ: AMZN) is a multinational technology corporation that primarily specializes in e-commerce, digital streaming, cloud computing, and artificial intelligence. The company's last close price on June 23, 2023, was 129.33USD with a change of -0.82 (-0.63%). The following analysis will delve into Amazon's stock performance and financial outlook to provide an evaluation of its investment potential.
Technical Analysis
Amazon's stock has experienced some recent fluctuation, with a trading range between 128.28 and 130.84. The stock's year-high price is 146.57, while the year-low is 81.43. The company has a volume of 71.83 million, which is higher than the average volume of 62.76 million. The RSI14 of 60 indicates a moderate momentum in the stock price movement.
The stock is currently trading significantly above both its 50-day moving average (114.54) and its 200-day moving average (104.28). The 3-month MACD (4.79) also indicates that the stock has experienced a recent bullish trend. These statistics suggest that Amazon's stock has been on a general uptrend for the past few months.
Fundamental Analysis
Amazon's Market Cap is 1.33 trillion USD, which indicates its continuing impact and large share within the market. The company's EPS is 0.41 with a high price-to-earnings (PE) ratio of 315.44. This high PE ratio may suggest that investors have high expectations for the company's future growth. There are currently 10.26 billion shares outstanding for Amazon.com, Inc.
Considering the company's next earnings announcement is scheduled for July 26, 2023, a crucial date for investors to take note of. Amazon's discounted cash flow (DCF) value is 134.62, which is generally used to provide an estimate of the stock's intrinsic value. Analysts have a target consensus price of 161.55, with a target high of 270 and a target low of 97.78.
Relevant News
Recent news about Amazon has been quite diverse. The company's Subscribe & Save service has been praised as an advantage for attracting more Prime customers and generating significant spending. On the other hand, the FTC is suing Amazon over alleged deceptive practices related to Prime subscriptions.
Additionally, concerns have emerged about the shrinking profits of Amazon Web Services (AWS) and its competition in the market. This news comes while Amazon continues to provide impressive dividend income opportunities to investors, as reported in a recent article.
Stock Predictions
Based on the technical and fundamental data, along with recent news, the stock prediction for Amazon's next trading day (June 26, 2023) points towards a positive trend. In the upcoming week, the stock price is predicted to gravitate around the discounted cash flow value (134.62), with a potential movement towards the target consensus price (161.55).
Final Evaluation
Taking everything into account, Amazon.com, Inc. (NASDAQ: AMZN) stock can be categorized as a Hold. Investors are advised to monitor the company's future performance, considering both the technical and fundamental analysis and the most recent news on the stock. The high price-to-earnings ratio and recent fluctuation in AWS profits may be disconcerting to some investors, but the general uptrend in the stock price could make Amazon an attractive investment option for those with a long-term investment horizon.
