Amazon Inc Stock Alpha and Beta Analysis

AMZN Stock  USD 144.84  2.19  1.49%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Amazon Inc. It also helps investors analyze the systematic and unsystematic risks associated with investing in Amazon over a specified time horizon. Remember, high Amazon's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Amazon's market risk premium analysis include:
Beta
1.13
Alpha
0.0669
Risk
2.08
Sharpe Ratio
0.062
Expected Return
0.13
Please note that although Amazon alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, Amazon did 0.07  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Amazon Inc stock's relative risk over its benchmark. Amazon Inc has a beta of 1.13  . Amazon returns are very sensitive to returns on the market. As the market goes up or down, Amazon is expected to follow. At this time, Amazon's Book Value per Share is very stable as compared to the past year. As of the 5th of December 2023, Enterprise Value over EBITDA is likely to grow to 26.59, while Enterprise Value over EBIT is likely to drop (273.00).

Enterprise Value

909.43 Billion

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out Amazon Backtesting, Amazon Valuation, Amazon Correlation, Amazon Hype Analysis, Amazon Volatility, Amazon History and analyze Amazon Performance.

Amazon Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Amazon market risk premium is the additional return an investor will receive from holding Amazon long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Amazon. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Amazon's performance over market.
α0.07   β1.13

Amazon expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Amazon's Buy-and-hold return. Our buy-and-hold chart shows how Amazon performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Amazon Market Price Analysis

Market price analysis indicators help investors to evaluate how Amazon stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Amazon shares will generate the highest return on investment. By understating and applying Amazon stock market price indicators, traders can identify Amazon position entry and exit signals to maximize returns.

Amazon Return and Market Media

The median price of Amazon for the period between Wed, Sep 6, 2023 and Tue, Dec 5, 2023 is 137.63 with a coefficient of variation of 5.72. The daily time series for the period is distributed with a sample standard deviation of 7.77, arithmetic mean of 135.96, and mean deviation of 6.89. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
AMZN Review of Powerhouse Internet Stock Amazon.com AMZN ... - StockNews.com
09/12/2023
2
Filing
09/13/2023
3
Sale by David Zapolsky of 42816 shares of Amazon
09/18/2023
4
Dow Jones Futures Fed Meeting Looms Instacart IPO Valued At ... - Investors Business Daily
09/19/2023
5
Relative Strength Made AMZN Stock A Winner In A Tough Market - Investors Business Daily
09/22/2023
6
EPS Estimate
09/29/2023
7
MarketBeat Stock of the Week, Amazon Goes Big on AI - Nasdaq
10/03/2023
8
EPS Reported
10/26/2023
9
Nasdaq rallies and Dow sinks after another turbulent week of stock ... - Morningstar
10/27/2023
10
Financial Statements
11/01/2023
11
US STOCKS-Wall St rebounds as easing Treasury yields boost ... - Nasdaq
11/10/2023
12
Bona fide gift to David Zapolsky of 2800 shares of Amazon subject to Section 16
11/15/2023
13
Hyundai-and-Amazon-Partner-to-Deliver-Innovative-Customer ... - Amazon Press Release
11/16/2023
14
IRobot Stock Hit By EUs Competition Concerns About Amazon Deal - Nasdaq
11/28/2023
15
Amazon.com Inc Stock Is Lower By -0.25 percent This Week Buy, Hold, or Sell - InvestorsObserver
12/01/2023

About Amazon Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Amazon or other stocks. Alpha measures the amount that position in Amazon Inc has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2020 2021 2022 2023 (projected)
Long Term Debt to Equity0.340.350.460.51
Interest Coverage20.9718.288.899.12

Amazon Upcoming Company Events

As portrayed in its financial statements, the presentation of Amazon's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Amazon's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Amazon's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Amazon. Please utilize our Beneish M Score to check the likelihood of Amazon's management manipulating its earnings.
1st of February 2024
Upcoming Quarterly Report
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25th of April 2024
Next Financial Report
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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
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31st of December 2022
Last Financial Announcement
View

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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 Backtesting, Amazon Valuation, Amazon Correlation, Amazon Hype Analysis, Amazon Volatility, Amazon History and analyze Amazon Performance.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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.
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Amazon technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Amazon technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Amazon trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...