Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Friday, July 29, 2022 10:59:15 PM
By: Stock News | July 29, 2022
Amazon.com, Inc. (AMZN) is a renowned e-commerce behemoth with a global market presence. The company operates through its three broad segments of North America; International; and Amazon Web Services (AWS).
It was reported that AMZN Prime Members purchased more than 300 million items worldwide during Prime Day 2022, making this year’s event the biggest in the company’s history. Worldwide, Prime customers shopped for more than 100,000 items per minute, with U.S. Prime members purchasing more than 60,000 items per minute. The best-selling categories worldwide were Amazon Devices, Consumer Electronics, and Home.
AMZN shares have gained 13.9% over the past month and 1.1% intraday. However, the stock has declined 32.6% over the past year and 26.7% year-to-date to close its last trading session at $122.28.
Here are the factors that could affect AMZN’s performance in the near term:
Bleak Bottom Line
For the fiscal second quarter ended June 30, AMZN’s total net sales increased 7.2% year-over-year to $121.23 billion. On the other hand, its operating income declined 56.9% from the prior-year quarter to $3.32 billion. Net income and EPS decreased 126.1% and 126.3% from the same period the prior year to a negative $2.03 billion and a negative $0.20.
Stretched Valuations
In terms of its forward non-GAAP P/E, AMZN is trading at 303.00x, 2,388.4% higher than the industry average of 12.18x. The stock’s forward EV/EBIT multiple of 82.34 is 595.7% higher than the industry average of 11.84. In terms of its forward Price/Book, it is trading at 7.48x, 216.6% higher than the industry average of 2.36x.
Narrow Profit Margins
AMZN’s trailing-12-month EBIT margin and net income margin of 4.17% and 4.48% are 52.9% and 31.9% lower than their respective industry averages of 8.85% and 6.58%. Its trailing-12-month ROTC and ROA of 5.13% and 5.21% are 28.1% and 5.5% lower than their respective industry averages of 7.13% and 5.52%. However, AMZN’s trailing-12-month ROE of 18.05% is 7.9% higher than the industry average of 16.73%.
POWR Ratings Reflect Bleak Prospects
AMZN’s POWR Ratings reflect this bleak outlook. The stock has an overall rating of D, equating to Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
AMZN has a Growth grade of D in sync with its bleak bottom-line growth in the last reported quarter. The stock also has a D grade for Value, consistent with its lofty valuations.
In the 65-stock Internet industry, it is ranked #35. The industry is rated F.
Click here to see the additional POWR Ratings for AMZN (Momentum, Stability, Sentiment, and Quality).
View all the top stocks in the Internet industry here.
Bottom Line
The stellar Prime Day this year might bolster the company’s top line. However, AMZN is currently struggling with bottom-line losses, and its low profitability is concerning. Moreover, with analysts expecting AMZN’s EPS for the current year to decline, I think the stock might be best avoided now.
How Does Amazon.com, Inc. (AMZN) Stack Up Against its Peers?
While AMZN has an overall POWR Rating of D, one might consider looking at its industry peers, Yelp Inc. (YELP) and trivago N.V. (TRVG), which have an overall B (Buy) rating.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent AMZN News
- Apollo Eyes $5 Billion Investment in Intel; TSMC and Samsung Explore UAE Chip Projects, and More • IH Market News • 09/23/2024 10:32:25 AM
- Nike Shares Surge 7% Pre-Market as Elliott Hill Becomes CEO; FedEx Shares Tumble 13% After Profit Miss • IH Market News • 09/20/2024 10:02:58 AM
- AIG names new CFO; Progyny Drops 24% After Losing Key 2025 Contract; Exicure Jumps 190% With Nasdaq Extension • IH Market News • 09/19/2024 10:26:48 AM
- Buy with Prime and Amazon Multi-Channel Fulfillment Expand with New Capabilities and More Brands • Business Wire • 09/18/2024 02:34:00 PM
- Meta Strengthens Child Privacy on Instagram; Google Overturns $1.7 Billion Antitrust Fine; Snap Updates Spectacles • IH Market News • 09/18/2024 10:13:07 AM
- Microsoft Boosts Share Buyback, Raises Dividends by 10%, Intel Secures Chip Deal with Amazon • IH Market News • 09/17/2024 10:40:35 AM
- Prime Big Deal Days is Back October 8-9—Offering Prime Members Exclusive Access to Millions of Early Holiday Deals • Business Wire • 09/17/2024 05:00:00 AM
- Intel and AWS Expand Strategic Collaboration, Helping Advance U.S.-Based Chip Manufacturing • Business Wire • 09/16/2024 08:01:00 PM
- Cellebrite Enhances Investigative Analytics Solution with Amazon Web Services (AWS) • GlobeNewswire Inc. • 09/16/2024 12:30:00 PM
- Intel Secures $3.5 Billion Subsidy, Stellantis Backs EU Emissions Targets, BP and Apollo Reach $1 Billion Deal • IH Market News • 09/16/2024 10:03:27 AM
- OpenAI Unveils Strawberry AI Model Series; Boeing Stock Falls 4% Amid Strike; HR Surges 20% on Growth Forecast • IH Market News • 09/13/2024 10:12:55 AM
- Amazon Music Live Returns for Season Three with Series Premiere from Jelly Roll on October 17 • Business Wire • 09/13/2024 12:03:00 AM
- Norfolk Southern CEO Fired, Ryanair Lowers Fare Forecast, 23andMe Considers Acquisition Proposals • IH Market News • 09/12/2024 10:02:29 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/11/2024 11:07:18 PM
- GameStop plunges 11% on stock offering, DJT drops post-debate, GSK fails shingles vaccine trial • IH Market News • 09/11/2024 10:25:41 AM
- ADDING MULTIMEDIA National Football League and Amazon Web Services Expand Partnership to Further Shape the Future of Football • Business Wire • 09/10/2024 03:23:00 PM
- National Football League and Amazon Web Services Expand Partnership to Further Shape the Future of Football • Business Wire • 09/10/2024 02:00:00 PM
- Amazon Fresh Introduces New Grocery Savings for Prime Members • Business Wire • 09/10/2024 07:15:00 AM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 08:20:13 PM
- Central Japan Railway Company Selects AWS for Yamanashi Maglev Line to Drive Efficient Operations for its Next-Generation, High-Speed Train Service • Business Wire • 09/05/2024 05:02:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/30/2024 08:26:21 PM
- Intuitive Machines Soars 18% on NASA Contract, Intel Considers Splitting Operations, Dell Reassesses Selling SecureWorks • IH Market News • 08/30/2024 10:00:08 AM
- Big Lots Falls 27%, Considers Bankruptcy; DraftKings Acquires Simplebet, Berkshire Hits $1 Trillion • IH Market News • 08/29/2024 10:06:50 AM
- AWS Parallel Computing Service is Now Generally Available, Designed to Accelerate Scientific Discovery • Business Wire • 08/28/2024 07:23:00 PM
FEATURED Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • Sep 24, 2024 8:50 AM
FEATURED Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM