Amazon.com Inc (AMZN)
Fun Fact
- Bezos's 1st choice for his new startup website was “Cadabra,” and the second choice was “Relentless.” The website relentless.com still forwards to Amazon.
- Bezos’ folks took out $300,000 from their retirement savings to invest in their son’s new internet startup.
- Amazon is the 2nd US company to hits $1 Trillion market capitalization on 1 September 18.
Amazon.com, Inc. engages in the provision of online retail shopping services. It operates through the following business segments: North America, International, and Amazon Web Services (AWS). AMZN is a component stock of the S&P 500 & Nasdaq 100 index.
Stock Valuation (TTM 12 Mths to Jun 20)
Price | USD 3,078
Market Capitalization | USD 1.54T vs Enterprise Value (EV) USD 1.55T。
Price /Earning (PE) | 118X. Expensive vs average PE of S&P 29X.
Price /Book (PB) | 20.9X. Expensive vs average PB of S&P 3.8X.
Dividend Yield (DY) | Nil. Amazon.com Inc does not pay dividends vs average DY of S&P 1.75%.
Net Income | USD 13.2B (+9% YoY).
Net Margin | 5.9%. AMZN's Net Margin % is ranked higher than 74% of the 1020 Companies in the Retail - Cyclical industry.
Interest Coverage | 14.5X. Ben Graham requires that a company has minimum interest coverage of 5. Interest Coverage is an important factor in assessing a company's overage financial strength.
Analyst Consensus
Target Price | USD 3,662
Call | Buy
Technical Analysis
Long term uptrend.
Short term downtrend. Resistance USD 3,552 & support USD 2,717. Stochastic & RSI in the oversold region but have no crossover. That means no buy signal yet.
Conclusion
The valuation is fairly expensive. Can buy due to the strong financial strength and eCommerce business potential. But wait till buy signal confirmation to enter a long or short term buy.
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