Amazon Stock Buy Hold or Sell Recommendation

AMZN
 Stock
  

USD 90.35  1.89  2.14%   

Given the investment horizon of 90 days and your typical level of risk aversion, 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.
  
The advice is provided from Amazon's buy-and-hold perspective. Please continue to 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. We conduct extensive research on individual companies such as Amazon and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Amazon Inc.

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

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Amazon Inc has a Risk Adjusted Performance of (0.23), Jensen Alpha of (0.61), Total Risk Alpha of (0.64) and Treynor Ratio of (0.32)
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 generated a negative expected return over the last 90 days
Amazon Inc has high historical volatility and very poor performance
The company currently holds 48.74 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.
About 60.0% of Amazon shares are held by institutions such as insurance companies
Latest headline from news.google.com: Amazon.com Inc. stock falls Thursday, underperforms market - msnNOW

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-0.49Value At Risk-5
Potential Upside4.46Standard Deviation3.16
   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 originate 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.
Security TypeSharesValue
Zwj Investment Counsel IncCommon Shares17.7 KM
Zwj Investment Counsel IncCommon Shares16.6 K1.8 M
Zwj Investment Counsel IncCommon Shares7932.6 M
Zwj Investment Counsel IncCommon Shares8552.9 M
Zwj Investment Counsel IncCommon Shares8052.6 M
Zwj Investment Counsel IncCommon Shares5171.8 M
Zwj Investment Counsel IncCommon Shares5391.7 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

201720182019202020212022 (projected)
Capital Expenditure(10.06 B)(11.32 B)(12.69 B)(35.04 B)(55.4 B)(56.85 B)
Depreciation Amortization and Accretion11.48 B15.34 B21.79 B25.25 B34.3 B37 B
Net Cash Flow or Change in Cash and Cash Equivalents1.92 B10.32 B4.24 B5.97 B(5.9 B)(6.06 B)
Net Cash Flow Business Acquisitions and Disposals(13.97 B)(2.19 B)(2.46 B)(2.33 B)(1.99 B)(2.14 B)
Issuance Repayment of Debt Securities9.93 B(7.69 B)(10.07 B)(1.1 B)6.29 B6.79 B
Net Cash Flow from Financing9.86 B(7.69 B)(10.07 B)(1.1 B)6.29 B6.79 B
Net Cash Flow from Investing(27.82 B)(12.37 B)(24.28 B)(59.61 B)(58.15 B)(59.68 B)
Net Cash Flow Investment Acquisitions and Disposals(3.05 B)1.14 B(9.13 B)(22.24 B)(773 M)(834.03 M)
Net Cash Flow from Operations18.43 B30.72 B38.51 B66.06 B46.33 B49.98 B
Effect of Exchange Rate Changes on Cash713 M(351 M)70 M618 M(364 M)(373.58 M)
Share Based Compensation4.21 B5.42 B6.86 B9.21 B12.76 B13.76 B

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
-0.61
β
Beta against NYSE Composite1.55
σ
Overall volatility
3.17
Ir
Information ratio -0.18

Amazon Volatility Alert

Amazon Inc exhibits very low volatility with skewness of 0.92 and kurtosis of 3.11. However, we advise investors to further study Amazon Inc technical indicators to ensure that all market info is available and is reliable. 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 Equity0.09 %(0.31) %
Return On Asset0.02 %(0.14) %
Profit Margin0.0226 %(1.27) %
Operating Margin0.0258 %(5.51) %
Current Valuation1029.87 B16.62 B
Shares Outstanding10.2 B571.82 M
Shares Owned by Insiders9.83 %10.09 %
Shares Owned by Institutions60.01 %39.21 %
Number of Shares Shorted81.18 M4.71 M
Price to Earning83.26 X28.72 X
Price to Book6.98 X9.51 X
Price to Sales1.80 X11.42 X
Revenue469.82 B9.43 B
Gross Profit197.48 B27.38 B
EBITDA74.26 B3.9 B
Net Income33.36 B570.98 M
Cash and Equivalents58.66 B2.7 B
Cash per Share5.75 X5.01 X
Total Debt48.74 B5.32 B
Debt to Equity1.20 %48.70 %
Current Ratio0.94 X2.16 X
Book Value Per Share13.48 X1.93 K
Cash Flow from Operations46.33 B971.22 M
Short Ratio0.81 X4.00 X
Earnings Per Share1.12 X3.12 X
Price to Earnings To Growth5.23 X4.89 X
Target Price140.64
Number of Employees1.54 M18.84 K
Beta1.19-0.15
Market Capitalization902.44 B19.03 B
Total Asset420.55 B29.47 B
Retained Earnings33.68 B9.33 B
Working Capital1.82 B1.48 B
   Exercise or conversion by David Zapolsky of 13780 shares of Amazon subject to Rule 16b-3 [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.
 2019 2020 2021 2022 (projected)
Receivables20.82 B24.54 B32.89 B35.49 B
Inventories20.5 B23.8 B32.64 B35.22 B

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.

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Run Exotic Thematic Idea Now

Exotic
Exotic Theme
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic theme has 40 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 Exotic Theme or any other thematic opportunities.
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Please continue to 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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When running Amazon Inc 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 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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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 YOY
(0.1) 
Market Capitalization
902.4 B
Quarterly Revenue Growth YOY
0.147
Return On Assets
0.02
Return On Equity
0.0878
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 Amazon value 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.