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Nasdaq AMZN Amazon

Income and Personal Spending Increased in October

4 years 11 months ago
Economic recovery is continuing in the midst of historic inflation, with the average U.S. household’s spending increasing 1.3% and helping to spur further growth, reports the Wall Street Journal. In addition to personal spending rising, personal income also grew by 0.5% and jobless claims fell to new historic lows, creating an environment that favors continued [...] Read more at ETFtrends.com.

Got $5,000? 3 Stocks to Hold for the Next 20 Years

4 years 11 months ago
Committing to buying and holding a stock for 20 years is no easy task. If you do it, you need to make sure the company will still be around then. As such, it makes sense to buy large companies with significant market positions and excellent long-term growth prospects; companies l

Airbnb Stock: Bull vs. Bear

4 years 11 months ago
By expanding the concept of what room (and home) rentals mean for the hospitality industry, Airbnb (NASDAQ: ABNB) has become a leading brand in the space, inviting the wrath of global hoteliers vying to come up with their own competing platforms.

3 Reasons Rivian Could Be a Great Buy Now

4 years 11 months ago
Few stocks capture the market's imagination and ire quite like Rivian (NASDAQ: RIVN), the electric vehicle (EV) start-up that's only recently started generating revenue. Shares more than doubled from the IPO price of $78 per share but have now fallen sharply from their highs.

3 Reasons to Buy Ankr

4 years 11 months ago
For cryptocurrency investors thinking long term, Ankr (CRYPTO: ANKR) may be one of the best crypto plays in the market right now. An emerging force in decentralized finance (DeFi), Ankr has been making some serious gains lately. In fact, ANKR is up about 40% during the past month

Better Fintech Stock: PayPal or Affirm

4 years 11 months ago
PayPal (NASDAQ: PYPL) and Affirm (NASDAQ: AFRM) might initially seem like two very different fintech companies. However, their interests have started overlapping over the past year, and Affirm is emerging as a potential threat to PayPal's long-term growth.

These 2 Cathie Wood Stocks Are Screaming Buys

4 years 11 months ago
Finding quality stocks isn't always a simple task, but thanks to the magic of the internet, it is now easier than ever to find inspiration from some of the most recognized names in the game. One such famous figure is Cathie Wood, CEO of the investment management firm ARK Invest.

3 Reasons to Buy Siacoin

4 years 11 months ago
For cryptocurrency investors, the search for meaningful utility is always on. Finding the next cryptocurrency network with the disruptive ability to innovate in hyper-growth sectors of the economy is the goal.

Amazon: Set Up to Deliver Strong ‘Multi-Year Profitability,’ Says Analyst

4 years 11 months ago

Throughout the pandemic, Amazon (AMZN) invested in its fulfillment and delivery network. The company has also been on a hiring spree and has raised wages. All have resulted in elevated costs. Now, to offset the cost increases, the ecommerce giant has announced its FBA (fulfillment by Amazon) fees are set to rise by an average of 5.2%, beginning on January 18.

While this is bad news for sellers, specifically those who use the FBA service, Morgan Stanley’s Brian Nowak thinks it will be good news for shareholders, as the price increase provides a "potential ~$1bn (3%) cushion to '22 EBIT.”

Historically, Amazon increases its FBA price by roughly 2%-3% per year so this hike is larger than normal. Nowak estimates Amazon’s FBA revenue haul in 2021 was around $45 billion, with the present 2022 forecast based on a typical ~2-3% annual increase incorporating 18% growth and resulting in revenue of $54 billion. “As such,” the 5-star analyst notes, “~5% pricing increase would add an incremental ~$1.2bn of revenue and (assuming an 80% flow through) ~$1bn of EBIT.”

But there’s a bigger picture to look at here. While Nowak thinks that the 5% pricing increase “may not be material alone,” the analyst believes it is just one example of the “many levers and factors” which set the company up to to “deliver stronger multi-year profitability.”

These include Covid costs declining, Amazon’s scale and “high margin revenue streams,” improving on labor inefficiencies, while Nowak also ponders whether a Prime price increase is in the cards, too.

As such, the analyst believes the current valuation is “under-appreciating the multi-year durability of top-line retail revenue growth and company-wide profitability (from retail and high margin revenue streams) as the company grows into its outsized '20/'21 build.”

Going by Nowak’s $4,000 price target, the “under-appreciation” means Amazon shares are presently undervalued by 12%. (To watch Nowak’s track record, click here)

Amazon is a unique beast on Wall Street with large and unanimous coverage; all 30 recent reviews are positive, naturally resulting in a Strong Buy consensus rating. The $4,095 average target is a touch higher than Nowak’s objective and set to generate returns of 14% in the year ahead. (See Amazon stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Why Micron Stock Popped Today

4 years 11 months ago
What happened Shares of computer memory-maker Micron Technology (NASDAQ: MU) jumped out of the gate Tuesday, rising as much as 4.6% before turning tail and retreating to a 2.2% gain as of 11:25 a.m. ET. (Which is still respectable, given that the rest of the Nasdaq Stock Market i
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