U.S. House of Representatives Judiciary Committee Chairman Jim Jordan on Wednesday subpoenaed the chief executives of Alphabet, Amazon, Apple, Facebook and Instagram parent Meta Platforms, and Microsoft for documents and communications relating to free-speech issues.
Below is Validea's daily guru fundamental report for AMAZON.COM, INC. (AMZN). Of the twelve 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
Investors in Amazon.com Inc (Symbol: AMZN) saw new options begin trading today, for the August 18th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 184 days until expiration the newly trading contrac
It's only been days since Microsoft (NASDAQ: MSFT) announced its ChatGPT-powered version of Bing, but Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock is already feeling the heat.
Amazon's (NASDAQ: AMZN) management has never been shy about investing for growth. The customer-obsessed company is having a harder time convincing investors that these costs will lead to shareholder gains in the future. This video will take a beginner-friendly look into Amazon's
All five FAANG stocks have fallen sharply in response to recession fears, but two stand out from the pack. Amazon (NASDAQ: AMZN) and Netflix (NASDAQ: NFLX) saw their share prices tumble 47% and 48%, respectively, from all-time highs. Neither stock has fallen more sharply at any p
The recent 13F filing from BlackRock (
NYSE:BLK
) revealed that the asset management and investment company turned bullish on Atlassian (
NASDAQ:TEAM
) and Two Harbors (
NYSE:TWO
). It also raised its holdings in Alphabet (
NASDAQ:GOOGL
)(
NASDAQ:GOOG
), Apple (
NASDAQ:AAPL
), Microsoft (
NASDAQ:M
S
FT
), and Amazon (
NASDAQ:AMZN
).
Using TipRanks’ database, let’s examine what’s in store for these stocks in the future.
What’s the Prediction for TEAM and TWO?
Using TipRanks’ database, we found that shares of TEAM and TWO fail to appeal at their current levels. TipRanks’
Stock Comparison tool shows that the analyst community is cautiously optimistic about these stocks. Further, their average price target on both these stocks indicates that the upside remains capped near the current levels.
While analysts are cautiously optimistic about these stocks, hedge funds and insiders are selling Atlassian.
Hedge funds sold 8.2M shares of Atlassian last quarter. Meanwhile,
insiders sold TEAM stock worth $128.5M. Overall, it has an Underperform Smart Score of one. As for Two Harbors, the stock sports a Neural Smart Score of seven.
Which of these Big Tech Stocks Is Most Attractive?
BlackRock capitalized on the low share prices of
tech giants and increased its holdings in Q4. Shares of big tech companies recovered a bit in 2023 and are trading in the green. Meanwhile, on TipRanks, AMZN, AAPL, GOOGL, and MSFT carry a Strong Buy consensus rating.
Further, shares of these companies sport an Outperform Smart Score on TipRanks. However, both AMZN and GOOGL stocks look lucrative at current levels based on their upside potential over the next 12 months.
Analysts’ 12-month average price target of $137.05 on
AMZN stock reflects an upside potential of 37.46% from current levels. Meanwhile,
GOOGL's stock offers an upside potential of 36.91% based on analysts’ average price target of $129.63.
Bottom Line
The latest 13F filing reveals that BlackRock continues to be bullish on big tech stocks. Notably, shares of big tech giants could get a significant lift as the global macro environment shows improvement. Apple continues to be BLK’s biggest holding, followed by Microsoft and Amazon. It also
increased its stake in penny stock Mullen Automotive (
NASDAQ:MULN
) in Q4.
Retail investors should note that following the trades of top institutions and managers could prove profitable. Also, investors can leverage
TipRanks’ Experts Center tool to pick stocks with the potential to beat the market.
Find out which
stock the biggest hedge fund managers are buying right now
.
Disclosure
Dividend investing is a great way to generate wealth from money entrusted to publicly held companies. Those regular payouts can help with budgeting -- and boost the budget -- by providing a predictable flow of cash for retirees or anyone else living on their investments.
Which stocks to buy today? According to top Wall Street analysts, the three stocks listed below are Strong Buys. Each stock received a new Buy rating recently and has a significant upside as well.
To find more stocks like these, take a look at TipRanks’
Analyst Top Stocks tool. It shows you a real-time list of all stocks that have been recently rated by top-ranking analysts.
Here are today’s stocks. Click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio.
Similarweb (
NYSE:SMWB
) – All four top analysts who recently rated the
SMWB stock gave it a Buy recommendation. The web analytics company helps analyze the website performance of the companies. Today, JMP Securities analyst
Patrick Walravens reiterated a Buy rating on the stock with a price target of $14. The consensus 12-month forecast of top analysts on the stock indicates an upside of 86.95%.
Amazon.com (
NASDAQ:AMZN
) – Amazon.com provides online retail shopping and cloud computing services. Yesterday, analyst
Rob Sanderson of Loop Capital Markets reiterated a Buy rating on
AMZN stock with a price target of $140. The stock’s 12-month price prediction, based on the consensus of all four top analysts who gave it a Buy rating, implies an upside of 38.94%.
Sunnova Energy (
NYSE:NOVA
) – Seven top analysts who recently rated
NOVA stock gave it a Buy recommendation. The company provides solar and energy storage services. Yesterday, Evercore ISI analyst
Sean Morgan maintained his Buy rating on the stock and lowered the price target to $31 from $35. Further, the consensus 12-month price target of top analysts suggests an impressive upside of 81.75%.
Who are the Top Analysts?
TipRanks ranks financial analysts according to the success rates of their ratings and the average return on each of their ratings. See real-time analyst rankings and learn more about the performance of top analysts on TipRanks’
The global e-commerce industry will approach $4 trillion in revenue this year, according to Statista. That suggests there's a lot of opportunity to go around. Moreover, Statista estimates that e-commerce revenue will continue growing at a greater than 11% compound annual rate for
Japanese trading house Itochu Corp has agreed to supply wind-generated power to Meta Platforms in the United States and solar energy to Amazon in Japan, it said on Wednesday.
Alphabet (Google’s) stock (NASDAQ: GOOG) has lost 9.8% in the last week, underperforming the S&P 500 (down 1%). Further, the same trend was observed over the last ten days (-5.8% vs 0.6%) and one month period (2.8% vs 3.2%).
India's TVS Motor Co Ltd is in talks with Abu Dhabi Investment Authority (ADIA), Goldman Sachs Group Inc and Carlyle Group Inc for an investment in its electric vehicle (EV) arm, the Economic Times reported on Wednesday.
Earnings season is undoubtedly one of the most critical periods for stocks, with companies finally breaking the silence and revealing what’s transpired behind closed curtains.
2022 was brutal for e-commerce giant Amazon (
NASDAQ:AMZN
) stock. However, so far this year,
AMZN stock is up around 16% despite its recent dip following its
mixed Q4 results. Nonetheless, I believe the current Amazon Web Services (AWS) segment headwinds are only temporary and that the business will rebound as soon as economic headwinds fade away. The long-term growth story of Amazon remains intact. Therefore, I’m bullish on the stock and will buy it at its current levels.
AWS Disappointed; What Does Its Future Hold?
The major focus of the Q4 results was AWS, which witnessed a continuous slowdown during Q4. AWS revenue growth slowed from 40% in Q4 2021 to 28% in Q3 2022 and 20% in Q4 2022. Further, there was a significant operating margin contraction from 29.8% in the prior-year quarter to 26.3% in Q3 to 24.3% in Q4.
Amazon also provided lackluster guidance that fell below analysts’ expectations. Q1 revenues are expected to grow by 4%-8% year-over-year and be in the range of $121 billion-$126 billion versus consensus estimates of $125.3 billion. Operating income guidance of $0-$4.0 billion (compared to $3.7 billion in the first quarter of 2022) also added to investors’ woes.
Management stated that enterprises of all sizes evaluated ways to optimize their cloud spending in response to the tough macroeconomic conditions. What’s more discouraging is that these headwinds are expected to continue for “at least the next couple of quarters,” as stated by the company.
Likewise, management also pointed out that AWS's revenue increased only 15% year-over-year in January. If AWS ends Q1 at 15% year-over-year growth, it will mark the first quarter-over-quarter revenue decline for AWS since its inception. These indications are truly disappointing.
AWS is a cloud computing business that provides options to enterprises to scale up or down based on demand. Given the expectations of a recessionary downturn, companies accordingly downsized their demand for cloud services.
However, given the strong secular tailwind, the long-term secular growth trend of the cloud industry remains intact. Sometimes, bad news now can bring good news in the future.
The fact is that the cloud provides the ability to optimize costs relatively quickly, especially during times of economic uncertainty. It will, thereupon, attract more enterprises to migrate to the cloud, especially once the macro environment improves.
Also, a recession, like any other business cycle, will not last forever. It is, thus, only a matter of time before the AWS business will return to its growth phase again.
Ex-AWS, the Rest of AMZN Numbers Were Reassuring
While revenues decelerated at AWS, other segments showed impressive growth, especially the e-commerce space, with Third-Party Seller Services registering robust 20% year-over-year growth.
Q3 saw a “record-breaking holiday season with customers purchasing nearly half a billion items from small businesses in the U.S.” from Thanksgiving through Cyber Monday.
It is worth noting that during the five-day period, small businesses in the U.S. generated more than $1 billion in sales. This is commendable, especially given the current macroeconomic scenario. In addition, advertising sales also grew 19%, with subscription services jumping 13%.
Region-wise, North America sales grew 14% year-over-year in constant currency, while international segment revenue growth of 5% (in constant currency) was weaker than expected. However, management shared some encouraging numbers during the earnings call.
CEO Andy Jassy stated, “if you look at the compounded annual growth rate from 2019 to '21, in the U.K., it was over 30%; in Germany, it was 26%; in Japan, it was 21%. And the fact that we haven't given back that growth and these are all net of FX, but if you look at even the last couple of quarters where we're continuing to grow and we haven't given back some of that growth... and we're excited about that.” Therefore, Amazon continues to grow well in its international footprint despite the lackluster Q4 numbers.
Meanwhile, the value proposition from the expansion of Amazon Prime also continues to grow. This includes faster delivery speeds on more products, an ever-growing slate of Prime video and music offerings, and the addition of new offerings like Buy-with-Prime and RxPass in the healthcare space.
Is Amazon Stock a Buy, According to Analysts?
The Wall Street community is clearly optimistic about Amazon stock. Overall, the stock commands a Strong Buy consensus rating based on 36 Buys and three Holds. The
average AMZN stock price target of $137.05 implies 37.46% upside potential from current levels.
As Amazon houses multiple businesses under its radar, I believe EV/EBITDA is the best metric to evaluate the stock’s valuation. Being an industry leader, the company has historically traded at high multiples. At present, however, Amazon stock is trading at around 12.9x EV/EBITDA (on a forward basis) compared to its own five-year historical average of 23.35x. This implies a huge 45% discount.
It's no wonder, then, that Amazon stock has a very positive signal from hedge fund managers, who cumulatively
added 29 million shares from Q2 2022 to Q3. Retail investors are following suit. TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Amazon, with
4.9% of investors on TipRanks increasing their exposure to AMZN stock over the past 30 days.
Conclusion: Consider Buying Amazon on the Dip
While Q4 AWS numbers disappointed, the cloud industry is still in its nascent stage and should bounce back as soon as the macro uncertainty fades away. With that, profit margins should also recover further, aided by cost-cutting initiatives. Additionally, there are other areas of profitable growth, including e-commerce, Prime memberships, as well as a strong advertising business.
Knowing well that the money invested in AMZN may not show great returns in the near term, the stock still remains attractive in the long term.
Disclosure
After struggling last year, Amazon (NASDAQ: AMZN) stock has seen some encouraging rebound momentum early in 2023's trading. But while the the company's share price is now up roughly 18% year to date, it still trades down roughly 47% from its valuation peak.
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11 minutes 46 seconds ago
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