Amazon Profit Margin vs. Market Capitalization

AMZN -  USA Stock  

USD 3,505  75.85  2.12%

For Amazon profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Amazon to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Amazon Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Amazon's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Amazon Inc over time as well as its relative position and ranking within its peers. Please continue to Trending Equities.

Amazon Current Profitability Trends 

 
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Sales per Share is expected to rise to 833.08 this year, although the value of Price to Sales Ratio will most likely fall to 3.76. Amazon Consolidated Income is quite stable at the moment as compared to the past year. The company's current value of Consolidated Income is estimated at 23.02 Billion. Net Income is expected to rise to about 23 B this year, although the value of Accumulated Other Comprehensive Income will most likely fall to (194.2 M).

Amazon Profit Margin

0.0594Share
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.

Amazon Inc Market Capitalization vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Amazon's current stock value. Our valuation model uses many indicators to compare Amazon value to that of its competitors to determine the firm's financial worth.
Amazon Inc is rated second in profit margin category among related companies. It is number one stock in market capitalization category among related companies creating about  280,120,481,928  of Market Capitalization per Profit Margin. Amazon Profit Margin is quite stable at the moment as compared to the past year. The company's current value of Profit Margin is estimated at 0.06. Comparative valuation analysis is a catch-all model that can be used if you cannot value Amazon by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Amazon's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Amazon's earnings, one of the primary drivers of an investment's value.

Amazon Market Capitalization vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Amazon 
Profit Margin 
 = 
Net Income 
Revenue 
X
100 
6.64 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Amazon 
Market Cap 
 = 
Shares Outstanding 
X  
Share Price 
1860 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.

Amazon Market Capitalization vs Competition

Amazon Inc is number one stock in market capitalization category among related companies. Market capitalization of Internet Retail industry is presently estimated at about 1.99 Trillion. Amazon totals roughly 1.86 Trillion in market capitalization claiming about 93% of equities under Internet Retail industry.
Capitalization  Workforce  Revenue  Valuation  Total debt

Amazon Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Amazon, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Amazon will eventually generate negative long term returns. The profitability progress is the general direction of Amazon's change in net profit over the period of time. It can combine multiple indicators of Amazon, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2021
Accumulated Other Comprehensive Income-180 M-194.2 M
Consolidated Income21.3 B23 B
Net Income21.3 B23 B
Net Income Common Stock21.3 B23 B
Operating Income22.9 B24.7 B
Income Tax Expense2.9 B3.1 B
Net Income Per Employee16.4 K14.3 K
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments North America, International, and Amazon Web Services . It sells merchandise and content purchased for resale from third-party sellers through physical and online stores. The company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, and Echo and other devices provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store and develops and produces media content. In addition, it offers programs that enable sellers to sell their products on its websites, as well as its stores and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content. Further, the company provides compute, storage, database, analytics, machine learning, and other services, as well as fulfillment, advertising, publishing, and digital content subscriptions. Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items access to streaming of movies and TV episodes and other services. The company serves consumers, sellers, developers, enterprises, and content creators. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.

Amazon Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Amazon. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Amazon position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Amazon's important profitability drivers and their relationship over time.

Use Amazon in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Amazon position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amazon will appreciate offsetting losses from the drop in the long position's value.

Amazon Pair Trading

Amazon Inc Pair Trading Analysis

Correlation analysis and pair trading evaluation for Amazon and Farfetch Ltd Cl. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Use Investing Themes to Complement your Amazon position

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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Chemicals
Chemicals Theme
Fama and French focuses on testing asset pricing under different economic assumptions. Chemicals theme has 61 constituents.
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Please continue to Trending Equities. 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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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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To fully project Amazon's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Amazon Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Amazon's income statement, its balance sheet, and the statement of cash flows.
Potential Amazon investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Amazon investors may work on each financial statement separately, they are all related. The changes in Amazon's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Amazon's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.