Amazon Story

<div class='circular--portrait' style='background:#FB7B09;color: #F0FFF0;font-size:3em;'>AMZ</div>
AMZN -- USA Stock  

USD 3,163  24.15  0.76%

Given the investment horizon of 90 days, Amazon is expected to generate 1.05 times less return on investment than the market. In addition to that, the company is 2.27 times more volatile than its market benchmark. It trades about 0.04 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.1 per unit of volatility. While some risk-seeking institutional investors are getting worried about consumer cyclical space, it is reasonable to outline Amazon Com as a possible investment alternative. We will evaluate if the latest Amazon price volatility suggests a bounce in November.
Published over a month ago
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Are Amazon shareholders ready to quit?
Amazon Com currently holds 91.4 B in liabilities with Debt to Equity (D/E) ratio of 1.24, which is about average as compared to similar companies. The entity has a current ratio of 1.16, suggesting that it is in a questionable position to pay out its financial obligations when due.
Volatility is a rate at which the price of Amazon or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Amazon may increase or decrease. In other words, similar to Amazon's beta indicator, it measures the risk of Amazon and helps estimate the fluctuations that may happen in a short period of time. So if prices of Amazon fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Amazon's Liquidity

Amazon financial leverage refers to using borrowed capital as a funding source to finance Amazon Com ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Amazon financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Amazon's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Amazon, but it might be worth checking our own buy vs. sell analysis

Amazon Volatility Drivers

Amazon unsystematic risk is unique to Amazon Com and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Amazon you can also buy JD Com Inc. You can also mitigate this risk by investing in the internet retail sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Amazon important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Amazon income statement and balance sheet. Here are more details about Amazon volatility.
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