Amazon Stock Alpha and Beta Analysis

AMZN -  USA Stock  

USD 3,409  109.16  3.31%

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Amazon Inc. It also helps investors analyze the systematic and unsystematic risks associated with investing in Amazon over a specified time horizon. Remember, high Amazon's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Please continue to Amazon Backtesting, Amazon Valuation, Amazon Correlation, Amazon Hype Analysis, Amazon Volatility, Amazon History and analyze Amazon Performance.

Amazon Beta 

 
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Please note that although Amazon alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Amazon did 0.10  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Amazon Inc stock's relative risk over its benchmark. Amazon Inc has a beta of 0.92  . Let's try to break down what Amazon's beta means in this case. Amazon returns are very sensitive to returns on the market. As the market goes up or down, Amazon is expected to follow.
Amazon Tangible Asset Value is quite stable at the moment as compared to the past year. The company's current Tangible Asset Value is estimated at 330.35 Billion.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Amazon Quarterly Book Value per Share

227.33Share

Amazon Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Amazon market risk premium is the additional return an investor will receive from holding Amazon long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Amazon. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Amazon's performance over market.
α-0.1   β0.92
90 days against DJI

Amazon expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Amazon's Buy-and-hold return. Our buy-and-hold chart shows how Amazon performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Amazon Market Price Analysis

Market price analysis indicators help investors to evaluate how Amazon stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Amazon shares will generate the highest return on investment. By understating and applying Amazon stock market price indicators, traders can identify Amazon position entry and exit signals to maximize returns.

Amazon Return and Market Media

The median price of Amazon for the period between Mon, Jul 19, 2021 and Sun, Oct 17, 2021 is 3355.73 with a coefficient of variation of 3.85. The daily time series for the period is distributed with a sample standard deviation of 130.6, arithmetic mean of 3393.83, and mean deviation of 110.11. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
      Timeline 
1
EPS Reported07/29/2021
2
Sale by Jonathan Rubinstein of 301 shares of Amazon08/04/2021
3
Bona fide gift to Jeffrey Bezos of 8915 shares of Amazon sub...08/09/2021
4
Bona fide gift to Jeffrey Bezos of 2790 shares of Amazon sub...08/12/2021
5
Exercise or conversion by Clark David H of 1425 shares of Am...08/17/2021
6
If You Had 5,000 Right Now, Would You Put It On Amazon, Alib...08/18/2021
7
Sale by David Zapolsky of 1 shares of Amazon08/20/2021
8
Exercise or conversion by Clark David H of 190 shares of Ama...08/24/2021
9
Sale by Jonathan Rubinstein of 286 shares of Amazon09/02/2021
10
US STOCKS-SP 500, Dow fall after inflation data Big Tech sup...09/10/2021
11
Filing09/20/2021
12
Amazon.com vs. Tesla and Other Large-Cap Stocks Hedge Funds ...09/21/2021
13
Amazon Stock Sinks As Market Gains What You Should Know - Na...09/29/2021
14
Amazon.com Inc. stock rises Tuesday, still underperforms mar...10/05/2021
15
Analysts Expect Amazon.com, Inc. Will Announce Quarterly Sal...10/12/2021
16
EPS Estimate10/14/2021

About Amazon Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in Amazon Inc has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2018 2019 2020 2021 (projected)
Long Term Debt to Equity0.910.380.340.46
Interest Coverage12.7118.9320.9729.11

Amazon Upcoming Company Events

As portrayed in its financial statements, the presentation of Amazon's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Amazon's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Amazon's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Amazon. Please utilize our Beneish M Score to check the likelihood of Amazon's management manipulating its earnings.
Upcoming Quarterly Report4th of November 2021
Next Earnings Report1st of February 2022
Next Fiscal Quarter End30th of September 2021
Next Fiscal Year End1st of February 2022
Last Quarter Report30th of June 2021
Last Earning Announcement30th of September 2020

Build Portfolio with Amazon

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Please continue to Amazon Backtesting, Amazon Valuation, Amazon Correlation, Amazon Hype Analysis, Amazon Volatility, Amazon History and analyze Amazon Performance. 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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.
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Amazon technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Amazon technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Amazon trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...