Shares in Amazon.com, Inc. show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The prospective high growth for the next fiscal years is among the main assets of the company
● The company is in a robust financial situation considering its net cash and margin position.
● Historically, the company has been releasing figures that are above expectations.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The stock is in a well-established, long-term rising trend above the technical support level at 2410.22 USD
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at USD 3401.8.
● Technically, the stock approaches a strong medium-term resistance at USD 3531.45.
● With an enterprise value anticipated at 4.44 times the sales for the current fiscal year, the company turns out to be overvalued.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 107.65 times its estimated earnings per share for the ongoing year.
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Amazon.com, Inc. is one of the world leaders in on-line distribution of products to the general public. The group also operates a marketplace activity, allowing individuals and distribution companies to conduct their purchase and selling transactions for goods and services. The activity is organized around three families of products and services:
- electronic and computer products: toys, cameras, computers, laptops and peripherals, TVs, stereo systems, readers, wireless communication products, etc. Amazon.com also offers kitchen and garden equipment, clothing, beauty products, etc.;
- cultural products: books, musical products, video games and DVDs;
- other: primarily Internet interface and application development services.
Net sales break down by source of income between sales of services (55.5%) and sales of products (44.5%).
Net sales are distributed geographically as follows: the United States (68.8%), Germany (6.5%), the United Kingdom (5.9%), Japan (4.5%), and other (14.3%).