One of the big lessons from coronavirus-era shutdowns was that consumer behavior can rapidly shift. Those fast changes carry with them investment implications. Pandemic-forced alterations in consumer proclivities are just one example. There are more “natural” changes in consumer behavior that build over time. Many of those are driven by younger generations as they enter the [...]
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Datadog DDOG announced that it has increased security and observability assistance for Amazon’s AMZN Amazon Web Services’ (“AWS") serverless applications utilizing Lambda and Step Functions. Unveiled at AWS re:Invent, the new feat
(RTTNews) - Amazon.com, Inc. (AMZN) announced Tuesday that its extended Black Friday and Cyber Monday holiday shopping event, which kicked off November 17 and continued through November 27, was its biggest ever compared to the same 11-day period ending on Cyber Monday in previous
U.S. stocks ended marginally lower on Monday, with investors taking a pause after major indexes recorded four straight weeks of gains as they awaited a busy week of economic data. All three major indexes ended in negative territor
Consumer stocks were mixed pre-bell Tuesday, with the Consumer Staples Select Sector SPDR Fund (XLP) inactive and the Consumer Discretionary Select Sector SPDR Fund (XLY) declining 0.2%.
The U.S. holiday season officially kicked off on Black Friday and retailers are expecting sales to get a boost as people go on a shopping spree over the next five weeks. Although the holiday season, over the past few years, has be
The holiday season for 2023 was kickstarted by the e-commerce sales boom observed on Black Friday following Thanksgiving. Usually, late November and December is a highly profitable period for the online retail market. However, pai
In this video, I will go over all the figures we have on the ongoing holiday shopping season, which has started off with a bang for companies like Shopify (NYSE: SHOP), MercadoLibre, and Amazon, to name a few.
Below is Validea's guru fundamental report for AMAZON.COM INC (AMZN). Of the 22 guru strategies we follow, AMZN rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibi
One of the best-performing stocks in this millennium has been Amazon (NASDAQ: AMZN). An investment of $30,000 in Amazon at the start of 2000 would have made you a millionaire now, but if you started with a smaller position and consistently added to it along the way, you may have
The iShares Core S&P U.S. Value ETF (IUSV) made its debut on 07/24/2000, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
In 2022, the Nasdaq Composite index fell 33% as a spike in inflation curbed consumer and commercial spending. Countless companies posted dismal results, which led investors to bid down their stocks. However, economic improvements have allowed for a market recovery this year, and
Amazon (NASDAQ: AMZN) looks as impressive as it has in years. The stock is up close to 75% year to date. The tech titan's profitability is increasing. It's moving into exciting new areas.
(RTTNews) - The European Commission, which was probing Amazon.com Inc.'s proposed $1.7 billion acquisition of consumer robot company iRobot Corp., said it has competition concerns regarding the deal.
For Immediate ReleaseChicago, IL – November 28, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the f
Spending online on Cyber Monday is set to exceed $12 billion, a record, as bargain hunters snap up deals on items including Barbie dolls, Lego sets, headphones and smart watches, according to preliminary estimates from Adobe Digital Insights.
How much higher can Amazon (
NASDAQ:AMZN
) stock possibly go? So far, Amazon looks like the ultimate winner as Americans shop 'til they drop. I am bullish on AMZN stock because Amazon is demonstrating its dominance -- not only as an e-commerce platform but also as a package delivery juggernaut.
Amazon is, by far, the best-known e-commerce company in America. However, the company also has redoubtable positions in the grocery delivery and healthcare market segments.
Not only that, but Amazon is also a powerful contender in the cloud computing space. As we'll see, the experts on Wall Street heavily favor Amazon, and there are plenty of reasons to consider a share position in AMZN stock today.
Don't Obsess Over Amazon's Valuation
Bargain seekers might not feel comfortable investing in Amazon after the
stock's amazing rally this year. After all, Amazon's GAAP trailing 12-month price-to-earnings (P/E) ratio of 76.4x is much higher than the sector median P/E ratio of 15.7x.
On the other hand, Amazon's seemingly high valuation may be justified since the company is highly profitable and continues to grow despite the doubters' reservations. As you may recall, Amazon
earned $0.94 per share in the
third quarter of 2023, easily beating the consensus estimate of $0.58 per share.
Furthermore, Amazon offers value to its shareholders because the company is diversified beyond its e-commerce platform. In particular, Amazon is well-regarded for its Amazon Web Services (AWS) cloud business.
As evidence of this, customer relations management (CRM) software provider Salesforce (
NYSE:CRM
) just expanded its partnership with Amazon. Through this collaboration, Salesforce will "select Salesforce products on the AWS Marketplace."
This sounds like a win-win arrangement for Salesforce and Amazon. Salesforce could potentially generate more sales, while Amazon gets a cut of the
revenue that will be generated through the AWS Marketplace.
Amazon is Now America's Biggest Package Shipper
Most people would probably assume that the biggest package delivery company in the U.S. is either Federal Express (
NYSE:FDX
) or United Parcel Service (
NYSE:UPS
). That may have been true not too long ago, but now,
that title goes to the almighty Amazon.
That's an important title for Amazon to earn, as a whole lot of packages are being delivered this holiday season. According to an
Adobe Analytics report, Black Friday (the day after Thanksgiving) e-commerce spending in the U.S.
increased 7.5% year-over-year and hit a record of $9.8 billion.
Today is also a significant shopping day in the U.S. It's Cyber Monday, and as the name implies, it's a time when people are busy looking for shopping deals online. This makes sense since many people are at work instead of out shopping at bricks-and-mortar store locations.
Yet, they can still shop on their smartphones. Naturally, many people will go directly to Amazon's e-commerce app and look for the best deals they can find. Sure, Thanksgiving is over, but not everyone has completed their shopping for the December holidays.
This isn't just my personal opinion. A
survey conducted by Goldman Sachs (
NYSE:GS
) indicated that Amazon remains one of the top destinations for U.S. shoppers.
Is Amazon Stock a Buy, According to Analysts?
On TipRanks, AMZN comes in as a Strong Buy based on 41 unanimous Buy ratings assigned by analysts in the past three months. The
average Amazon stock price target is $175.50, implying 18.8% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell AMZN stock, the most accurate analyst covering the stock (on a one-year timeframe) is Rob Sanderson of Loop Capital Markets, with an average return of 28.9% per rating and a 93% success rate. Click on the image below to learn more.
Conclusion: Should You Consider Amazon Stock?
It's easy to get hung up on Amazon's valuation, especially if you use traditional metrics like the P/E ratio. There's nothing wrong with citing these metrics, but they don't tell the full story when it comes to Amazon's true value.
Amazon dominates multiple market segments, including package delivery. The company looks unstoppable now, and betting against Amazon would be downright foolish, in my opinion.
So, don't spend too much time obsessing about Amazon's P/E ratio. I believe that investors ought to consider AMZN stock now, especially since Black Friday sales were so strong in the U.S. This means that more packages are being shipped, more products are being bought online, and Amazon can continue to provide excellent value to its loyal shareholders.
Disclosure
U.S. stocks edged lower on Monday, with investors taking a post-Thanksgiving pause as the holiday shopping season kicked in to high gear and retailers lured bargain hunters with Cyber Monday deals. All three major U.S. stock indexes ended the session modestly lower.