Amazon.com Inc. [NASDAQ: AMZN] stock went on an upward path that rose over 0.77% on Friday, amounting to a one-week price decrease of less than -2.99%. The company report on March 5, 2021 that Content is King as the Digital Media Streaming Market Continues to Grow.
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The home entertainment industry’s transition to digital streaming looks to be nearly complete, but the digital content streaming industry still has a huge amount of room for growth in the coming years. Nearly every home in the developed world now has a device for streaming content, be it a purpose built device like an Amazon Fire TV stick or ROKU TV, a game console, or a smart TV, and the global streaming media device market is set to reach US$295.50 billion by 2027. This is fueling an ever growing demand for digital media content that is being filled by companies like BBTV (OTCQX:BBTVF) (TSX:BBTV), Netflix Inc (NASDAQ:NFLX), Apple Inc (NASDAQ:APPL), Amazon.com, Inc. (NASDAQ:AMZN), and Walt Disney Co (NYSE:DIS).
Over the last 12 months, AMZN stock rose by 55.95%. The one-year Amazon.com Inc. stock forecast points to a potential upside of 24.98. The average equity rating for AMZN stock is currently 1.60, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $1499.39 billion, with 500.00 million shares outstanding and 432.19 million shares in the current float. Compared to the average trading volume of 3.74M shares, AMZN stock reached a trading volume of 5388551 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Amazon.com Inc. [AMZN]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AMZN shares is $3999.36 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AMZN stock is a recommendation set at 1.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Wedbush have made an estimate for Amazon.com Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on February 03, 2021. While these analysts kept the previous recommendation, UBS raised their target price from $4000 to $4150. The new note on the price target was released on February 03, 2021, representing the official price target for Amazon.com Inc. stock. Previously, the target price had yet another raise from $4000 to $5200, while Susquehanna kept a Positive rating on AMZN stock. On February 03, 2021, analysts increased their price target for AMZN shares from 3600 to 4000.
The Average True Range (ATR) for Amazon.com Inc. is set at 86.82, with the Price to Sales ratio for AMZN stock in the period of the last 12 months amounting to 3.88. The Price to Book ratio for the last quarter was 16.06, with the Price to Cash per share for the same quarter was set at 168.89. Price to Free Cash Flow for AMZN in the course of the last twelve months was 57.84 with Quick ratio for the last quarter at 0.90.
AMZN Stock Performance Analysis:
Amazon.com Inc. [AMZN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.99. With this latest performance, AMZN shares dropped by -9.42% in over the last four-week period, additionally sinking by -15.04% over the last 6 months – not to mention a rise of 55.95% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AMZN stock in for the last two-week period is set at 34.98, with the RSI for the last a single of trading hit 31.11, and the three-weeks RSI is set at 38.49 for Amazon.com Inc. [AMZN]. The present Moving Average for the last 50 days of trading for this stock 3,215.03, while it was recorded at 3,044.74 for the last single week of trading, and 3,093.24 for the last 200 days.
Insight into Amazon.com Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Amazon.com Inc. [AMZN] shares currently have an operating margin of +5.91 and a Gross Margin at +39.57. Amazon.com Inc.’s Net Margin is presently recorded at +5.53.
Return on Total Capital for AMZN is now 13.69, given the latest momentum, and Return on Invested Capital for the company is 14.08. Return on Equity for this stock inclined to 27.44, with Return on Assets sitting at 7.81. When it comes to the capital structure of this company, Amazon.com Inc. [AMZN] has a Total Debt to Total Equity ratio set at 107.60. Additionally, AMZN Total Debt to Total Capital is recorded at 51.83, with Total Debt to Total Assets ending up at 31.29. Long-Term Debt to Equity for the company is recorded at 90.35, with the Long-Term Debt to Total Capital now at 43.52.
Reflecting on the efficiency of the workforce at the company, Amazon.com Inc. [AMZN] managed to generate an average of $16,434 per employee. Receivables Turnover for the company is 17.24 with a Total Asset Turnover recorded at a value of 1.41.Amazon.com Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.10.
AMZN Stock EPS
With the latest financial reports released by the company, Amazon.com Inc. posted 5.01/share EPS, while the average EPS was predicted by analysts to be reported at 6.25/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -19.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AMZN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Amazon.com Inc. go to 38.37%.
Amazon.com Inc. [AMZN] Insider Position Details
There are presently around $869,929 million, or 59.00% of AMZN stock, in the hands of institutional investors. The top three institutional holders of AMZN stocks are: VANGUARD GROUP INC with ownership of 32,435,650, which is approximately -1.062% of the company’s market cap and around 10.60% of the total institutional ownership; BLACKROCK INC., holding 27,524,749 shares of the stock with an approximate value of $82.59 billion in AMZN stocks shares; and STATE STREET CORP, currently with $47.87 billion in AMZN stock with ownership of nearly -2.389% of the company’s market capitalization.
Positions in Amazon.com Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 2,138 institutional holders increased their position in Amazon.com Inc. [NASDAQ:AMZN] by around 11,383,765 shares. Additionally, 1,315 investors decreased positions by around 8,672,088 shares, while 317 investors held positions by with 269,876,152 shares. The mentioned changes placed institutional holdings at 289,932,005 shares, according to the latest SEC report filing. AMZN stock had 443 new institutional investments in for a total of 1,931,189 shares, while 92 institutional investors sold positions of 354,540 shares during the same period.