Is Amazon Stock a Good Investment?

Amazon Investment Advice

AMZN

To provide specific investment advice or recommendations on Amazon Inc stock, we recommend investors consider the following general factors when evaluating Amazon Inc. This will help you to make an informed decision on whether to include Amazon in one of your diversified portfolios:

Examine Amazon's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Amazon's leadership team and their track record. Good management can help Amazon navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Broadline Retail space and any emerging trends that could impact Amazon's business and its evolving consumer preferences.
Compare Amazon's performance and market position to its competitors. Analyze how Amazon is positioned in terms of product offerings, innovation, and market share.
Check if Amazon pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Amazon's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Amazon Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Amazon Inc is a good investment.

Sell

Buy

Strong Hold

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.

Market Performance	OK	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Very Low	Details
Economic Sensitivity	Barely shadows the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Amazon Stock

Researching Amazon's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 64.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.95. Amazon Inc had not issued any dividends in recent years. The entity had 20:1 split on the 6th of June 2022.

To determine if Amazon is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Amazon's research are outlined below:

	Amazon Inc is unlikely to experience financial distress in the next 2 years
	Amazon Inc currently holds 135.61 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. Note, when we think about Amazon's use of debt, we should always consider it together with its cash and equity.
	Amazon Inc has a strong financial position based on the latest SEC filings
	About 64.0% of Amazon shares are held by institutions such as insurance companies
	Latest headline from news.google.com: Is Amazon.com the Ultimate Long-Term Tech Winner - Yahoo Finance

Amazon Quarterly Liabilities And Stockholders Equity

584.63 Billion

Amazon uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Amazon Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Amazon's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	1st of February 2024 Upcoming Quarterly Report	View
	25th of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	1st of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Amazon's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Amazon's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2017-02-02	2016-12-31	0.07	0.08	0.01	14
2016-10-27	2016-09-30	0.04	0.03	-0.01	25
2015-01-29	2014-12-31	0.01	0.02	0.01	100
2014-10-23	2014-09-30	-0.04	-0.05	-0.01	25
2012-07-26	2012-06-30	0.02	0.01	-0.01	50
2012-01-31	2011-12-31	0.01	0.02	0.01	100
2011-04-26	2011-03-31	0.03	0.02	-0.01	33
2011-01-27	2010-12-31	0.04	0.05	0.01	25

Amazon Target Price Consensus

Amazon target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Amazon's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

67	Strong Buy

Most Amazon analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Amazon stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Amazon Inc, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

Amazon Target Price Projection

Amazon's current and average target prices are 236.17 and 241.71, respectively. The current price of Amazon is the price at which Amazon Inc is currently trading. On the other hand, Amazon's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Amazon Market Quote on 6th of February 2025

Low Price	235.2	Odds
High Price	238.32	Odds

236.17 Target Price

Analyst Consensus On Amazon Target Price

Low Estimate	219.96	Odds
High Estimate	268.3	Odds

241.7141

Historical

Lowest Forecast 219.96

Target Price 241.71

Highest Forecast 268.3

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Amazon Inc and the information provided on this page.

Amazon Analyst Ratings

Amazon's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Amazon stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Amazon's financials, market performance, and future outlook by experienced professionals. Amazon's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Amazon's Top 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.

		Shares
Legal & General Group Plc	2024-09-30	67.8 M
Bank Of New York Mellon Corp	2024-09-30	66.5 M
Nuveen Asset Management, Llc	2024-09-30	64.7 M
Ubs Asset Mgmt Americas Inc	2024-09-30	57.8 M
Charles Schwab Investment Management Inc	2024-09-30	57.3 M
Alliancebernstein L.p.	2024-09-30	57.1 M
Amvescap Plc. Usd	2024-09-30	55 M
Amvescap Plc. Usd	2024-09-30	55 M
Goldman Sachs Group Inc	2024-09-30	54.7 M
Vanguard Group Inc	2024-09-30	805.7 M
Blackrock Inc	2024-09-30	667.3 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's market capitalization trends

The company currently falls under 'Mega-Cap' category with a current market capitalization of 2.55 T.

Market Cap

102.7 Billion

Amazon's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.06	0.06
Return On Capital Employed	0.09	0.10
Return On Assets	0.05	0.05
Return On Equity	0.15	0.14

The company has Profit Margin (PM) of 0.08 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.11 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.11.

Determining Amazon's profitability involves analyzing its financial statements and using various financial metrics to determine if Amazon is a good buy. For example, gross profit margin measures Amazon's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Amazon's profitability and make more informed investment decisions.

Amazon's Earnings Breakdown by Geography

Evaluate Amazon's management efficiency

Amazon Inc has return on total asset (ROA) of 0.0707 % which means that it generated a profit of $0.0707 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2256 %, meaning that it created $0.2256 on every $100 dollars invested by stockholders. Amazon's management efficiency ratios could be used to measure how well Amazon manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Amazon's Return On Tangible Assets are very stable compared to the past year. As of the 6th of February 2025, Return On Capital Employed is likely to grow to 0.1, while Return On Equity is likely to drop 0.14. At this time, Amazon's Intangible Assets are very stable compared to the past year. As of the 6th of February 2025, Net Tangible Assets is likely to grow to about 240 B, while Fixed Asset Turnover is likely to drop 2.27.

	Last Reported	Projected for Next Year
Book Value Per Share	17.63	18.51
Tangible Book Value Per Share	14.97	15.72
Enterprise Value Over EBITDA	16.39	17.21
Price Book Value Ratio	8.92	8.47
Enterprise Value Multiple	16.39	17.21
Price Fair Value	8.92	8.47
Enterprise Value	94 B	98.7 B

Evaluating the management effectiveness of Amazon allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Amazon Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.

Beta

1.146

Basic technical analysis of Amazon Stock

As of the 6th of February, Amazon shows the mean deviation of 1.45, and Risk Adjusted Performance of 0.1763. Amazon Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Amazon's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Amazon insiders, such as employees or executives, is commonly permitted as long as it does not rely on Amazon's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Amazon insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Jeffrey Bezos over six months ago Disposition of 431426 shares by Jeffrey Bezos of Amazon subject to Rule 16b-3
		David Zapolsky over a year ago Bona fide gift to David Zapolsky of 2800 shares of Amazon subject to Section 16
		David Zapolsky over a year ago Sale by David Zapolsky of 42816 shares of Amazon

Amazon's Outstanding Corporate Bonds

Amazon issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Amazon Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Amazon bonds can be classified according to their maturity, which is the date when Amazon Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Dana 575 percent Corp Bond US235822AB96	View
	AMAZON INC 48 Corp Bond US023135AP19	View
	AMAZON INC 495 Corp Bond US023135AQ91	View
	AMAZONCOM INC Corp Bond US023135CB05	View
	AMAZONCOM INC Corp Bond US023135CC87	View
	AMZN 3 13 APR 25 Corp Bond US023135CE44	View
	AMZN 33 13 APR 27 Corp Bond US023135CF19	View
	AMZN 345 13 APR 29 Corp Bond US023135CG91	View

View All Amazon Corporate Bonds

Understand Amazon's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Amazon's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1763
	Market Risk Adjusted Performance	2.22
	Mean Deviation	1.45
	Semi Deviation	1.38
	Downside Deviation	1.67
	Coefficient Of Variation	491.03
	Standard Deviation	1.84
	Variance	3.37
	Information Ratio	0.1608
	Jensen Alpha	0.3525
	Total Risk Alpha	0.2135
	Sortino Ratio	0.1768
	Treynor Ratio	2.21
	Maximum Drawdown	10.78
	Value At Risk	(2.42)
	Potential Upside	2.94
	Downside Variance	2.79
	Semi Variance	1.92
	Expected Short fall	(1.67)
	Skewness	0.0125
	Kurtosis	1.22

	Risk Adjusted Performance	0.1763
	Market Risk Adjusted Performance	2.22
	Mean Deviation	1.45
	Semi Deviation	1.38
	Downside Deviation	1.67
	Coefficient Of Variation	491.03
	Standard Deviation	1.84
	Variance	3.37
	Information Ratio	0.1608
	Jensen Alpha	0.3525
	Total Risk Alpha	0.2135
	Sortino Ratio	0.1768
	Treynor Ratio	2.21
	Maximum Drawdown	10.78
	Value At Risk	(2.42)
	Potential Upside	2.94
	Downside Variance	2.79
	Semi Variance	1.92
	Expected Short fall	(1.67)
	Skewness	0.0125
	Kurtosis	1.22

Consider Amazon's intraday indicators

Amazon intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Amazon stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	507040.0
	Daily Balance Of Power	(1.89)
	Rate Of Daily Change	0.98
	Day Median Price	236.76
	Day Typical Price	236.56
	Price Action Indicator	(3.54)
	Period Momentum Indicator	(5.89)

Amazon Corporate Filings

F4	11th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
13A	8th of November 2024 An amended filing to the original Schedule 13G	View Verify
	7th of November 2024 Other Reports	View Verify
10Q	1st of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify

Amazon time-series forecasting models is one of many Amazon's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Amazon's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Amazon Stock media impact

Far too much social signal, news, headlines, and media speculation about Amazon that are available to investors today. That information is available publicly through Amazon media outlets and privately through word of mouth or via Amazon internal channels. However, regardless of the origin, that massive amount of Amazon data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Amazon news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Amazon relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Amazon's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Amazon alpha.

Amazon Inc Historical Investor Sentiment

Investor biases related to Amazon's public news can be used to forecast risks associated with an investment in Amazon. The trend in average sentiment can be used to explain how an investor holding Amazon can time the market purely based on public headlines and social activities around Amazon Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Amazon's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Amazon and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Amazon news discussions. The higher the estimate score, the more favorable the investor's outlook on Amazon.

Amazon Maximum Pain Price Across May 16th 2025 Option Contracts

Amazon's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Amazon close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Amazon's options.

Amazon Corporate Management

Andrew Jassy	Sr. VP of Amazon Web Services	Profile
Shelley Reynolds	Principal Accounting Officer, VP and Worldwide Controller	Profile
Russ Grandinetti	Senior Consumer	Profile
Anuradha Aggarwal	CMO Growth	Profile
Steven Kessel	VP	Profile

Already Invested in Amazon Inc?

The danger of trading Amazon Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Amazon is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Amazon. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Amazon Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Amazon Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amazon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amazon Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amazon Inc Stock: