Amazon Stock Buy Hold or Sell Recommendation

AMZN -  USA Stock  

USD 2,082  69.14  3.21%

Given the investment horizon of 90 days and your highly speculative risk level, our recommendation regarding Amazon Inc is 'Buy'. 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.
  
Refresh
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
Buy

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Actively responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Amazon Inc has a Risk Adjusted Performance of (0.20), Jensen Alpha of (0.29), Total Risk Alpha of (0.23) and Treynor Ratio of (0.27)
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 net income, price to earnings to growth, and the relationship between the price to book and current ratio . Given that Amazon Inc has a number of shares shorted of 3.94 M, 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 113.29 B in liabilities with Debt to Equity (D/E) ratio of 0.85, which is about average as compared to similar companies. Amazon Inc has a current ratio of 0.94, 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.
Amazon Inc has a poor financial position based on the latest SEC disclosures
About 61.0% of Amazon shares are held by institutions such as insurance companies
Latest headline from www.marketbeat.com: Zacks Analysts Anticipate Amazon.com, Inc. Will Announce Quarterly Sales of 120.13 Billion - MarketBeat

Amazon current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Amazon analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Amazon analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price3,680.85
Target Median Price3,700.00
Target High Price4,655.00
Recommendation Mean1.70
Number Of Analyst Opinions53
Target Low Price2,250.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Amazon Returns Distribution Density

The distribution of Amazon's historical returns is an attempt to chart the future 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 stock.
Mean Return-0.49Value At Risk-5.62
Potential Upside4.51Standard Deviation3.31
 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
Vanguard Group IncCommon Shares34 M110.7 B
Blackrock IncCommon Shares29.1 M95 B
State Street CorpCommon Shares16.6 M54.1 B
Price T Rowe Associates IncCommon Shares16.1 M52.5 B
Fmr LlcCommon Shares15.1 M49.3 B
Susquehanna International Group LlpPut Options7.5 M24.4 B
Geode Capital Management LlcCommon Shares7.4 M24.1 B
Susquehanna International Group LlpCall Options7.3 M23.8 B
Capital Research Global InvestorsCommon Shares5.2 M17 B
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 Financing9.93 B(7.69 B)(10.07 B)(1.1 B)6.29 B6.79 B
Net Cash Flow from Investing(27.08 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 Operations18.36 B30.72 B38.51 B66.06 B46.33 B37.52 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 Consumer Cyclical 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 stock'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 DOW
-0.29
β
Beta against DOW1.86
σ
Overall volatility
3.36
Ir
Information ratio -0.12

Amazon Volatility Alert

Amazon Inc exhibits very low volatility with skewness of -1.02 and kurtosis of 3.34. However, we advise investors to further study Amazon Inc technical indicators to make sure 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 bullying 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 Equity18.05 %(0.31) %
Return On Asset3.35 %(0.14) %
Profit Margin4.48 %(1.27) %
Operating Margin4.12 %(5.51) %
Current Valuation1310 B16.62 B
Shares Outstanding507.15 M571.82 M
Shares Owned by Insiders9.87 %10.09 %
Shares Owned by Institutions60.52 %39.21 %
Number of Shares Shorted3.94 M4.71 M
Price to Earning42.11 X28.72 X
Price to Book9.05 X9.51 X
Price to Sales2.28 X11.42 X
Revenue477.75 B9.43 B
Gross Profit197.48 B27.38 B
EBITDA55.45 B3.9 B
Net Income21.41 B570.98 M
Cash and Equivalents66.38 B2.7 B
Cash per Share130.54 X5.01 X
Total Debt113.29 B5.32 B
Debt to Equity0.84 %48.70 %
Current Ratio0.96 X2.16 X
Book Value Per Share237.80 X1.93 K
Cash Flow from Operations39.32 B971.22 M
Short Ratio1.10 X4.00 X
Earnings Per Share51.10 X3.12 X
Price to Earnings To Growth3.31 X4.89 X
Number of Employees1.62 M18.84 K
Beta1.12-0.15
Market Capitalization1090 B19.03 B
Total Asset64.75 B29.47 B
Retained Earnings33.68 B9.33 B
Working Capital1.82 B1.48 B
Current Asset35.7 B9.34 B
   Exercise or conversion by Selipsky Adam of 1474 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.
Accumulation Distribution198418.0
Daily Balance Of Power(0.85)
Rate Of Daily Change0.97
Day Median Price2066.77
Day Typical Price2071.85
Market Facilitation Index0.0
Price Action Indicator(19.34)

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 stock 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. Although Amazon investors may find it confusing at the beginning, 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.

Did You Try This Idea?

Run Artificial Intelligence Thematic Idea Now

Artificial Intelligence
Artificial Intelligence Theme
Technology companies, funds, and ETFs across multiple industries that are involved in research or development in the field of reasoning, learning, natural language processing and perception as well as its application to science and commerce. This theme may also include entities involved in cybernetics and cognitive brain simulation field. The Artificial Intelligence theme has 40 constituents.
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 Artificial Intelligence Theme or any other thematic opportunities.
View All  Next Launch Artificial Intelligence
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 Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

Complementary Tools for Amazon Stock analysis

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.
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
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.
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.