Amazon Inc Stock Buy Hold or Sell Recommendation

AMZN Stock  USD 174.48  0.06  0.03%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Amazon Inc is 'Strong Hold'. Macroaxis provides Amazon buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Amazon positions. The advice algorithm takes into account all of Amazon's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Osisko Gold Ro's buy or sell advice are summarized below:
Real Value
168.49
Target Price
160.61
Hype Value
174.18
Market Value
174.48
Naive Value
176.64
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Amazon Inc given historical horizon and risk tolerance towards Amazon. When Macroaxis issues a 'buy' or 'sell' recommendation for Amazon Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Amazon Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Amazon and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Amazon Inc. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

Execute Amazon Buy or Sell Advice

The Amazon recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Amazon Inc. Macroaxis does not own or have any residual interests in Amazon Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Amazon's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AmazonBuy Amazon
Strong Hold

Market Performance

OKDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Amazon Inc has a Risk Adjusted Performance of 0.1137, Jensen Alpha of 0.1489, Total Risk Alpha of (0.07), Sortino Ratio of 0.1173 and Treynor Ratio of 0.2881
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.

Amazon Trading Alerts and Improvement Suggestions

Amazon Inc is unlikely to experience financial distress in the next 2 years
The company currently holds 135.61 B in liabilities with Debt to Equity (D/E) ratio of 1.2, which is about average as compared to similar companies. Amazon Inc has a current ratio of 0.92, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Amazon until it has trouble settling it off, either with new capital or with free cash flow. So, Amazon's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Amazon Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Amazon to invest in growth at high rates of return. When we think about Amazon's use of debt, we should always consider it together with cash and equity.
Amazon Inc has a strong financial position based on the latest SEC filings
About 63.0% of Amazon shares are held by institutions such as insurance companies
Latest headline from benzinga.com: Temus Strategic Shift US Warehouses Aim To Rival Amazons Delivery Speeds

Amazon Returns Distribution Density

The distribution of Amazon's historical returns is an attempt to chart the uncertainty of Amazon's future price movements. The chart of the probability distribution of Amazon stock daily returns describes the distribution of returns around its average expected value. We use Amazon Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Amazon returns is essential to provide solid investment advice for Amazon.
Mean Return
0.28
Value At Risk
-2.15
Potential Upside
2.71
Standard Deviation
1.67
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Amazon historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Amazon Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Amazon is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Amazon Inc backward and forwards among themselves. Amazon's institutional investor refers to the entity that pools money to purchase Amazon's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Bank Of America Corp2023-12-31
81 M
Capital Research Global Investors2023-12-31
80.2 M
Wellington Management Company Llp2023-12-31
77.8 M
Bank Of New York Mellon Corp2023-12-31
70.4 M
Legal & General Group Plc2023-12-31
68.2 M
Nuveen Asset Management, Llc2023-12-31
66.3 M
Jennison Associates Llc2023-12-31
56.4 M
Charles Schwab Investment Management Inc2023-12-31
51.9 M
Royal Bank Of Canada2023-12-31
51.9 M
Vanguard Group Inc2023-12-31
771.1 M
Blackrock Inc2023-12-31
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 Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory(3.3B)(2.8B)(9.5B)(2.6B)1.4B1.5B
Change In Cash4.2B6.0B(5.9B)17.8B19.6B20.6B
Free Cash Flow21.7B25.9B(14.7B)(16.9B)32.2B33.8B
Depreciation21.8B25.3B34.3B41.9B48.7B51.1B
Other Non Cash Items(85M)(2.7B)(14.2B)17.0B(748M)(785.4M)
Capital Expenditures16.9B40.1B61.1B63.6B52.7B55.4B
Net Income11.6B21.3B33.4B(2.7B)30.4B31.9B
End Period Cash Flow36.4B42.4B36.5B54.3B73.9B77.6B
Investments(9.1B)(22.2B)(773M)29.0B(48.1B)(45.7B)
Change Receivables(7.7B)(8.2B)(18.2B)(21.9B)(19.7B)(18.7B)
Net Borrowings(411M)9.0B6.3B19.9B22.9B24.0B
Change To Netincome7.6B6.0B(1.7B)28.4B32.7B34.3B

Amazon Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Amazon or Internet & Direct Marketing Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Amazon's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Amazon stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.15
β
Beta against NYSE Composite0.95
σ
Overall volatility
1.67
Ir
Information ratio 0.09

Amazon Volatility Alert

Amazon Inc has relatively low volatility with skewness of 1.42 and kurtosis of 5.25. However, we advise all investors to independently investigate Amazon Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Amazon's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Amazon's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Amazon Implied Volatility

Amazon's implied volatility exposes the market's sentiment of Amazon Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Amazon's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Amazon stock will not fluctuate a lot when Amazon's options are near their expiration.

Amazon Fundamentals Vs Peers

Comparing Amazon's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Amazon's direct or indirect competition across all of the common fundamentals between Amazon and the related equities. This way, we can detect undervalued stocks with similar characteristics as Amazon or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Amazon's fundamental indicators could also be used in its relative valuation, which is a method of valuing Amazon by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Amazon to competition
FundamentalsAmazonPeer Average
Return On Equity0.17-0.31
Return On Asset0.0465-0.14
Profit Margin0.05 %(1.27) %
Operating Margin0.08 %(5.51) %
Current Valuation1.86 T16.62 B
Shares Outstanding10.39 B571.82 M
Shares Owned By Insiders9.18 %10.09 %
Shares Owned By Institutions62.84 %39.21 %
Number Of Shares Shorted66.87 M4.71 M
Price To Earning83.26 X28.72 X
Price To Book8.97 X9.51 X
Price To Sales3.15 X11.42 X
Revenue574.78 B9.43 B
Gross Profit225.15 B27.38 B
EBITDA88.29 B3.9 B
Net Income30.43 B570.98 M
Cash And Equivalents53.89 B2.7 B
Cash Per Share5.75 X5.01 X
Total Debt135.61 B5.32 B
Debt To Equity1.20 %48.70 %
Current Ratio0.94 X2.16 X
Book Value Per Share19.44 X1.93 K
Cash Flow From Operations84.95 B971.22 M
Short Ratio1.30 X4.00 X
Earnings Per Share2.90 X3.12 X
Price To Earnings To Growth2.36 X4.89 X
Target Price206.2
Number Of Employees1.52 M18.84 K
Beta1.17-0.15
Market Capitalization1.81 T19.03 B
Total Asset527.85 B29.47 B
Retained Earnings113.62 B9.33 B
Working Capital7.43 B1.48 B
Note: Bona fide gift to David Zapolsky of 2800 shares of Amazon subject to Section 16 [view details]

Amazon Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Amazon . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Amazon Buy or Sell Advice

When is the right time to buy or sell Amazon Inc? Buying financial instruments such as Amazon Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Other Current Liabilities35.9B47.7B45.8B48.1B
Total Assets420.5B462.7B527.9B554.2B

Use Investing Ideas to Build Portfolios

In addition to having Amazon in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Heavy Metals Thematic Idea Now

Heavy Metals
Heavy Metals Theme
Companies involved in mining, production, and distribution of various industrial metals and minerals. The Heavy Metals theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Heavy Metals Theme or any other thematic opportunities.
View All  Next Launch
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:
Check out Amazon Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the Amazon Inc information on this page should be used as a complementary analysis to other Amazon's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Complementary Tools for Amazon Stock analysis

When running Amazon's price analysis, check to measure Amazon's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Amazon is operating at the current time. Most of Amazon's value examination focuses on studying past and present price action to predict the probability of Amazon's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Amazon's price. Additionally, you may evaluate how the addition of Amazon to your portfolios can decrease your overall portfolio volatility.
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Is Amazon's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amazon. If investors know Amazon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amazon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
50.693
Earnings Share
2.9
Revenue Per Share
55.783
Quarterly Revenue Growth
0.139
Return On Assets
0.0465
The market value of Amazon Inc is measured differently than its book value, which is the value of Amazon that is recorded on the company's balance sheet. Investors also form their own opinion of Amazon's value that differs from its market value or its book value, called intrinsic value, which is Amazon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amazon's market value can be influenced by many factors that don't directly affect Amazon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amazon's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amazon is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amazon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.