Is Amazon Stock a Good Investment?

Amazon Investment Advice

AMZN

To provide specific investment advice or recommendations on Amazon Inc stock, we recommend investors consider the following general factors when evaluating Amazon Inc. This will help you to make an informed decision on whether to include Amazon in one of your diversified portfolios:

Examine Amazon's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Amazon's leadership team and their track record. Good management can help Amazon navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Internet & Direct Marketing Retail space and any emerging trends that could impact Amazon's business and its evolving consumer preferences.
Compare Amazon's performance and market position to its competitors. Analyze how Amazon is positioned in terms of product offerings, innovation, and market share.
Check if Amazon pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Amazon's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Amazon Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Amazon Inc is a good investment.

Sell

Buy

Strong Hold

Macroaxis provides advice on Amazon Inc to complement and cross-verify current analyst consensus on Amazon Inc. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Amazon is not overpriced, please confirm all Amazon Inc fundamentals, including its shares outstanding, net income, price to earnings to growth, as well as the relationship between the price to book and current ratio . Given that Amazon Inc has a price to earning of 83.26 X, we suggest you to validate Amazon Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	OK	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Amazon Stock

Researching Amazon's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 63.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.32. Amazon Inc had not issued any dividends in recent years. The entity had 20:1 split on the 6th of June 2022.

To determine if Amazon is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Amazon's research are outlined below:

	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 zacks.com: Time to Buy the Surge in Alphabets Stock After Earnings

Amazon Quarterly Liabilities And Stockholders Equity

527.85 Billion

Amazon uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Amazon Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Amazon's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	1st of February 2024 Upcoming Quarterly Report	View
	25th of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	1st of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Amazon's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Amazon's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2017-02-02	2016-12-31	0.07	0.08	0.01	14
2016-10-27	2016-09-30	0.04	0.03	-0.01	25
2015-01-29	2014-12-31	0.01	0.02	0.01	100
2014-10-23	2014-09-30	-0.04	-0.05	-0.01	25
2012-07-26	2012-06-30	0.02	0.01	-0.01	50
2012-01-31	2011-12-31	0.01	0.02	0.01	100
2011-04-26	2011-03-31	0.03	0.02	-0.01	33
2011-01-27	2010-12-31	0.04	0.05	0.01	25

Amazon Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Amazon target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Amazon's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

62	Strong Buy

Most Amazon analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Amazon stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Amazon Inc, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

Amazon Target Price Projection

Amazon's current and average target prices are 179.62 and 160.61, respectively. The current price of Amazon is the price at which Amazon Inc is currently trading. On the other hand, Amazon's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Amazon Market Quote on 28th of April 2024

Low Price	176.13	Odds
High Price	180.82	Odds

179.62 Target Price

Analyst Consensus On Amazon Target Price

Low Estimate	146.16	Odds
High Estimate	178.28	Odds

160.61

Historical

Lowest Forecast 146.16

Target Price 160.61

Highest Forecast 178.28

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Amazon Inc and the information provided on this page.

Amazon Analyst Ratings

Amazon's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Amazon stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Amazon's financials, market performance, and future outlook by experienced professionals. Amazon's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Amazon's Top 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 originate 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

Note, although Amazon's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Amazon's market capitalization trends

The company currently falls under 'Mega-Cap' category with a current market capitalization of 1.87 T. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Amazon's market, we take the total number of its shares issued and multiply it by Amazon's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

102.7 Billion

Amazon's profitablity analysis

Amazon's profitability indicators refer to fundamental financial ratios that showcase Amazon's ability to generate income relative to its revenue or operating costs. If, let's say, Amazon is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Amazon's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Amazon's profitability requires more research than a typical breakdown of Amazon's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.06	0.06
Return On Capital Employed	0.10	0.11
Return On Assets	0.06	0.06
Return On Equity	0.15	0.16

The company has Profit Margin (PM) of 0.05 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.08 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.08.

Determining Amazon's profitability involves analyzing its financial statements and using various financial metrics to determine if Amazon is a good buy. For example, gross profit margin measures Amazon's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Amazon's profitability and make more informed investment decisions.

The data published in Amazon's official financial statements usually reflect Amazon's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Amazon Inc. For example, before you start analyzing numbers published by Amazon accountants, it's critical to develop an understanding of what Amazon's liquidity, profitability, and earnings quality are in the context of the Internet & Direct Marketing Retail space in which it operates.

Please note, the presentation of Amazon's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Amazon's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Amazon's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Amazon Inc. Please utilize our Beneish M Score to check the likelihood of Amazon's management manipulating its earnings.

Evaluate Amazon's management efficiency

Amazon Inc has return on total asset (ROA) of 0.0465 % which means that it generated a profit of $0.0465 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1749 %, meaning that it created $0.1749 on every $100 dollars invested by stockholders. Amazon's management efficiency ratios could be used to measure how well Amazon manages its routine affairs as well as how well it operates its assets and liabilities. As of the 28th of April 2024, Return On Tangible Assets is likely to grow to 0.06. Also, Return On Capital Employed is likely to grow to 0.11. At this time, Amazon's Other Assets are very stable compared to the past year. As of the 28th of April 2024, Net Tangible Assets is likely to grow to about 240 B, while Intangibles To Total Assets are likely to drop 0.04.

	Last Reported	Projected for Next Year
Book Value Per Share	19.59	20.57
Net Current Asset Value	0.00	0.00
Tangible Asset Value	0.00	0.00
Tangible Book Value Per Share	16.63	17.47
Enterprise Value Over EBITDA	18.43	17.51
Price Book Value Ratio	7.76	7.37
Enterprise Value Multiple	18.43	17.51
Price Fair Value	7.76	7.37
Enterprise Value	94 B	98.7 B

The analysis of Amazon's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Amazon's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Amazon Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.

Beta

1.16

Basic technical analysis of Amazon Stock

As of the 28th of April, Amazon shows the risk adjusted performance of 0.0863, and Mean Deviation of 1.25. Amazon Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Amazon Inc, which can be compared to its peers. Please confirm Amazon Inc coefficient of variation, as well as the relationship between the treynor ratio and semi variance to decide if Amazon Inc is priced correctly, providing market reflects its regular price of 179.62 per share. Given that Amazon has jensen alpha of 0.117, we suggest you to validate Amazon Inc's prevailing market performance to make sure the company can sustain itself at a future point.

Amazon's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Amazon insiders, such as employees or executives, is commonly permitted as long as it does not rely on Amazon's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Amazon insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		David Zapolsky over three months ago Bona fide gift to David Zapolsky of 2800 shares of Amazon subject to Section 16
		David Zapolsky over six months ago Sale by David Zapolsky of 42816 shares of Amazon

Amazon's Outstanding Corporate Bonds

Amazon issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Amazon Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Amazon bonds can be classified according to their maturity, which is the date when Amazon Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	AMAZON INC 38 Corp Bond US023135AN60	View
	AMAZON INC 48 Corp Bond US023135AP19	View
	AMAZON INC 495 Corp Bond US023135AQ91	View
	Amazon 28 percent Corp Bond US023135AZ90	View
	AMAZONCOM INC Corp Bond US023135CB05	View
	AMAZONCOM INC Corp Bond US023135CC87	View
	AMZN 3 13 APR 25 Corp Bond US023135CE44	View
	AMZN 33 13 APR 27 Corp Bond US023135CF19	View

View All Amazon Corporate Bonds

Understand Amazon's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Amazon's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0863
	Market Risk Adjusted Performance	0.1892
	Mean Deviation	1.25
	Semi Deviation	1.16
	Downside Deviation	1.36
	Coefficient Of Variation	780.96
	Standard Deviation	1.72
	Variance	2.94
	Information Ratio	0.076
	Jensen Alpha	0.117
	Total Risk Alpha	(0.01)
	Sortino Ratio	0.0958
	Treynor Ratio	0.1792
	Maximum Drawdown	10.43
	Value At Risk	(2.15)
	Potential Upside	2.82
	Downside Variance	1.85
	Semi Variance	1.35
	Expected Short fall	(1.42)
	Skewness	1.43
	Kurtosis	4.88

	Risk Adjusted Performance	0.0863
	Market Risk Adjusted Performance	0.1892
	Mean Deviation	1.25
	Semi Deviation	1.16
	Downside Deviation	1.36
	Coefficient Of Variation	780.96
	Standard Deviation	1.72
	Variance	2.94
	Information Ratio	0.076
	Jensen Alpha	0.117
	Total Risk Alpha	(0.01)
	Sortino Ratio	0.0958
	Treynor Ratio	0.1792
	Maximum Drawdown	10.43
	Value At Risk	(2.15)
	Potential Upside	2.82
	Downside Variance	1.85
	Semi Variance	1.35
	Expected Short fall	(1.42)
	Skewness	1.43
	Kurtosis	4.88

Consider Amazon's intraday indicators

Amazon intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Amazon stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0259
	Daily Balance Of Power	1.268657
	Rate Of Daily Change	1.03
	Day Median Price	178.48
	Day Typical Price	178.86
	Market Facilitation Index	4.69
	Price Action Indicator	4.12
	Period Momentum Indicator	5.95
	Relative Strength Index	57.47

Amazon Corporate Filings

	25th of April 2024 Other Reports	View Verify
F4	22nd of April 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
	11th of April 2024 Other Reports	View Verify
13A	12th of February 2024 An amended filing to the original Schedule 13G	View Verify

Amazon time-series forecasting models is one of many Amazon's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Amazon's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Amazon Stock media impact

Far too much social signal, news, headlines, and media speculation about Amazon that are available to investors today. That information is available publicly through Amazon media outlets and privately through word of mouth or via Amazon internal channels. However, regardless of the origin, that massive amount of Amazon data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Amazon news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Amazon relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Amazon's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Amazon alpha.

Amazon Inc Historical Investor Sentiment

Investor biases related to Amazon's public news can be used to forecast risks associated with an investment in Amazon. The trend in average sentiment can be used to explain how an investor holding Amazon can time the market purely based on public headlines and social activities around Amazon Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Amazon's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Amazon and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Amazon news discussions. The higher the estimate score, the more favorable the investor's outlook on Amazon.

Amazon Maximum Pain Price across 2024-05-03 Option Contracts

Amazon's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Amazon close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Amazon's options.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Amazon without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Amazon Corporate Directors

Amazon corporate directors refer to members of an Amazon board of directors. The board of directors generally takes responsibility for the Amazon's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Amazon's board members must vote for the resolution. The Amazon board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.

Thomas Alberg	Lead Independent Director	Profile
Jonathan Rubinstein	Independent Director	Profile
Tom Alberg	Lead Independent Director	Profile
Wendell Weeks	Director	Profile

How to buy Amazon Stock?

Examine Amazon's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Amazon's leadership team and their track record. Good management can help Amazon navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Internet & Direct Marketing Retail space and any emerging trends that could impact Amazon's business and its evolving consumer preferences.
Compare Amazon's performance and market position to its competitors. Analyze how Amazon is positioned in terms of product offerings, innovation, and market share.
Check if Amazon pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Amazon's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

Already Invested in Amazon Inc?

The danger of trading Amazon Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Amazon is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Amazon. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Amazon Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Amazon Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amazon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amazon Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amazon Inc Stock: