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Is Now An Opportune Moment To Examine Amazon.com, Inc. (NASDAQ:AMZN)?

Let's talk about the popular Amazon.com, Inc. (NASDAQ:AMZN). The company's shares led the NASDAQGS gainers with a... Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Let's talk about the popular Amazon.com, Inc. (NASDAQ:AMZN). The company’s shares led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Amazon.com’s outlook and value based on the most recent financial data to see if the opportunity still exists.” data-reactid=”19″>Let’s talk about the popular Amazon.com, Inc. (NASDAQ:AMZN). The company’s shares led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Amazon.com’s outlook and value based on the most recent financial data to see if the opportunity still exists.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" View our latest analysis for Amazon.com ” data-reactid=”20″>View our latest analysis for Amazon.com

Is Amazon.com still cheap?

According to my valuation model, Amazon.com seems to be fairly priced at around 8.67% above my intrinsic value, which means if you buy Amazon.com today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $2185.54, then there isn’t really any room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that Amazon.com’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Amazon.com generate?

NasdaqGS:AMZN Past and Future Earnings April 18th 2020

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Amazon.com. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Are you a shareholder? It seems like the market has already priced in AMZN’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?” data-reactid=”38″>Are you a shareholder? It seems like the market has already priced in AMZN’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Are you a potential investor? If you’ve been keeping an eye on AMZN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.” data-reactid=”39″>Are you a potential investor? If you’ve been keeping an eye on AMZN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Amazon.com. You can find everything you need to know about Amazon.com in the latest infographic research report. If you are no longer interested in Amazon.com, you can use our free platform to see my list of over 50 other stocks with a high growth potential.” data-reactid=”40″>Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Amazon.com. You can find everything you need to know about Amazon.com in the latest infographic research report. If you are no longer interested in Amazon.com, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.” data-reactid=”41″>If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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