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Amazon - AI Stock Analysis

Analysis generated February 22, 2025

Amazon.com, Inc. is an American multinational technology company that is well-recognized for its e-commerce, cloud computing, digital streaming, and artificial intelligence sectors. Established in 1994 by Jeff Bezos, the company has grown to be one of the largest and most influential entities globally. Amazon's diverse portfolio includes its flagship e-commerce site, the AWS cloud computing service, Amazon Prime Video, and its extensive investment in AI and logistics, among other sectors.

Fundamental Analysis

Amazon's recent financial performance indicates positive momentum. The revenue for the last quarter was $188 billion, showcasing an 18.05% increase from the previous quarter and a 10.78% rise compared to the same period last year. This continued growth underscores the company's robust market presence and ability to scale its operations.

Net income also highlights strong growth, standing at $20 billion for the last quarter. This is a 30.51% increase from the quarter before and an impressive 88.29% increase year-over-year. Such financial performance indicates strong profitability and effective cost management within the company.

The EBITDA for the last quarter was $23 billion, a 24.72% increase from the previous quarter and a 39.80% rise year-over-year. EBITDA growth is an excellent indicator of the company's efficient operational management and links to its cash flow generation capacity.

The current Price-to-Earnings (P/E) ratio is 40.3, suggesting the stock is potentially overvalued. High P/E ratios can indicate investor optimism but also pose a bearish outlook unless future earnings can justify this valuation. Moreover, recent insider selling of Amazon stock could be perceived as a bearish signal, reflecting concerns among company executives about future stock performance or cashing out at high valuations.

Technical Analysis

The current stock price is $216.58, representing a short-term decrease of 7.84% from a month ago. While this can be worrying in the short term, the stock has increased by 23.77% over the past year, suggesting a more positive long-term trend.

The current trend appears bearish, indicated by the declining Simple Moving Averages (SMA). Today, the SMA10 is 225.44, slightly down from the previous SMA10 of 226.68. This points towards a potential downward trend in price movement, signaling investor caution.

The Relative Strength Index (RSI) is 51.1, showing a neutral condition. In technical analysis, an RSI between 30 and 70 typically indicates stability, neither in overbought nor oversold conditions.

Alternative Data Analysis

Analyzing data beyond the traditional financial metrics provides additional insights. Currently, Amazon has 21,529 open job positions, an increase of 12% in recent months, which reflects potential company growth and expansion.

Customer acquisition metrics show that Amazon's website attracts an estimated 3.01B visitors with no significant change in the past few months. However, the number of daily mobile app downloads stands at approximately 110,000, which is down by 11% recently, raising concerns about customer retention or engagement.

Customer engagement analysis on social media indicates mixed signals. Amazon has 5.5M Instagram followers, up by 3%, suggesting an increased interest. The company has 6M Twitter followers, which has seen no change, indicating neutral interest.

The AltIndex AI score for Amazon is 50, aligned with a "hold" signal. This AI-driven score aggregates various forms of data, providing a holistic view and supporting a cautious approach to the stock.

Conclusion and Recommendation

In conclusion, Amazon demonstrates strong revenue, net income, and EBITDA growth. However, high P/E ratios, recent insider stock sales, and short-term bearish technical signals temper the bullish fundamental outlook. Alternative data suggests expansion in workforce but mixed customer engagement signals.

Based on this comprehensive analysis, one could consider Amazon stock as a "hold." While the company shows promising long-term growth potential, short-term technical and employee sentiment metrics recommend a cautious approach.

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.