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Category: Amazon and Stock Market
Last updated: 26 May 2020 Stock price: $2436.88 On this page we will look to provide more details on Amazon Inc, focussing on information that might not always be published or used in mainstream media.
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About Amazon.com
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon.
More details about Amazon.com
- Net sales of Amazon in 2019: $280.522 billion
- Total value of Amazon's assets: $225.248 billion
- Cash and equivalents of Amazon: $10.4 billion
- Cash provided by operating activities during 2019: $38.514 billion
- Amazon marketing expenses amounted to $13.814 billion in 2019
- Amazon's technology and content development costs in 2019 were: $28.837 billion
- As at end of December 2019, Amazon employed 798 000 full time employees
- Seasonal fluctuations of Amazon. The 4th quarter Amazon sees the highest sales with it having contributed (34%, 31% and 31% of total sales for the 2017, 2018 and 2019 fiscal years)
- As a 22 January 2020, the group has 3 192 shareholders of their common stock
Owned and leased property space of Amazon (AMZN)
Leased property space: in thousands of square feet
Owned property space: in thousands of square feet
*The group has 564 stores in North America and 7 International stores
- Office space: North America : 18 051
- Office space: International : 15 863
- Physical Stores: North America : 20 072*
- Physical Stores: International : 169*
- Fulfilment, data centres and other: North America : 187 148
- Fulfilment, data centres and other: International : 76 868
Owned property space: in thousands of square feet
- Office space: North America : 4 961
- Office space: International : 1 831
- Physical Stores: North America : 662
- Physical Stores: International : ----
- Fulfilment, data centres and other: North America : 5 591
- Fulfilment, data centres and other: International : 2 570
*The group has 564 stores in North America and 7 International stores
Amazon (AMZN) stock performance
The image below compares the cumulative total return of Amazon's stock against the S&P 500, S&P 500 retailing index and the Morgan Stanley Technology Index.
Amazon (AMZN) total cumulative return compared to that of the S&P 500, S&P 500 retailing index and Morgan Stanley Technology Index
A $100 invested at the end of 2014 would have resulted in an investment worth $595 as at the end of 2019. That is an annual growth rate of 42.9% over the last 5 years, which is extraordinary returns provided to stockholders, this while the S&P 500 provided an average annual return of 11.7%. So the stock of Amazon has grown at 3.67 times the S&P 500.
Our last Amazon (AMZN) stock valuation as at 1 May 2020
So based on the earnings report of Amazon (NASDAQ: AMZN) what do we value Amazon (AMZN) stock at? Based on their latest earnings report our valuation models provide a target price (full value price) for Amazon stock at $1290.70 a stock (up from our 3rd quarter 2019 earnings valuation of Amazon). We therefore believe the stock of Amazon is overvalued.
We usually advise investors to look to enter a stock at least 10% below our target price (full value price) which in this case is $1290.70. So a good entry point into Amazon would be around $1161.60. We expect the stock price of Amazon to pull back to levels closer to our target price (full value price) in coming weeks and months.
We usually advise investors to look to enter a stock at least 10% below our target price (full value price) which in this case is $1290.70. So a good entry point into Amazon would be around $1161.60. We expect the stock price of Amazon to pull back to levels closer to our target price (full value price) in coming weeks and months.
Amazon Scout