Important note
This AI stock analysis for Amazon is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Amazon - AI Stock Analysis
Analysis generated January 29, 2025
Amazon.com, Inc. (NASDAQ: AMZN) is a global leader in e-commerce, cloud computing, digital streaming, and artificial intelligence. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, Amazon started as a small online bookstore and has since evolved into one of the most valuable companies in the world. Its businesses range from consumer electronics, including Kindle e-readers and Echo smart speakers, to AWS (Amazon Web Services), which is a dominant player in the cloud computing sector. The company operates in three major segments: North America, International, and AWS, making it a diversified conglomerate with vast global reach.
Fundamental Analysis
Amazon reported revenue of $159 billion for the last quarter. This marks a 7.48% increase compared to the previous quarter and an 11.75% increase year-over-year, indicating strong and consistent growth. This reflects the company's robust business model and its ability to maintain upward momentum in different market conditions.
Net income for the last quarter was $15.3 billion, representing a 13.67% increase compared to the quarter before it and a 55.16% increase year-over-year. Such impressive growth in profitability underscores Amazon's efficient operations and cost management strategies.
EBITDA for the same period was $18.5 billion, which is an 18.12% increase from the previous quarter and a significant 27.87% increase year-over-year, signaling strong operational performance and cash flow generation.
The current P/E ratio stands at 50.41. While this may be considered high and could indicate overvaluation, it's not unusual for a high-growth company like Amazon. However, potential investors should approach this metric with caution.
Additionally, recent insider selling of stock could be seen as a bearish signal, potentially indicating concerns from within the company.
Technical Analysis
Today’s stock price of Amazon is $237.07. This is an increase of 5.95% compared to a month ago and a notable 49.10% increase year-over-year, highlighting a bullish trend in both the short and long term.
The current SMA10 (Simple Moving Average for 10 days) is 234.24, which is higher than the previous SMA10 of 233.13. This suggests a potential upward trend in price movement.
The RSI (Relative Strength Index) is 63.6, indicating a neutral condition. An RSI of 63.6 suggests that the stock is neither overbought nor oversold, providing a balanced outlook for potential traders.
Alternative Data Analysis
Amazon has 19,535 open job positions, which have decreased by 11% in the last couple of months. This could be indicative of the company trying to cut costs or improve margins, presenting a potentially bearish sign for growth.
The business outlook among employees is neutral, which doesn’t provide strong bullish or bearish signals.
Amazon's webpage attracts around 3.46 billion visitors, with a 22% increase in the last couple of months, which is a bullish indicator for customer acquisition and engagement.
Amazon sees about 110,000 mobile app downloads per day, although this number is down by 6% in the last couple of months. This downward trend could imply a potential loss of customer interest.
On social media, Amazon’s Instagram page has 5.4 million followers, with a 4% increase recently, indicating growing interest. The Twitter page has 6 million followers, but no change in the number of followers over the last couple of months, showing stagnant interest.
AltIndex’s AI score for Amazon is 58, suggesting a "hold" signal, derived from a combination of fundamental, technical, and alternative data analysis.
Conclusion and Recommendation
Amazon presents a mixed but relatively positive outlook. Its robust revenue growth, strong net income, and impressive EBITDA reflect the company's solid fundamentals. Technically, the stock appears to be in an upward trend, evidenced by its current price and SMA10. However, the high P/E ratio and recent insider selling could raise some concerns about potential overvaluation. Additionally, while some alternative data points like job postings and app downloads show a slight bearish trend, others like web visitors and Instagram followers present a bullish view.
Considering all the data, a balanced recommendation would be to hold the stock. Investors should keep an eye on the company's future financial performance, insider trading activity, and customer engagement metrics while considering the broader market conditions.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
