Amazon.com Stock Intrinsic Value – Amazon Receives Positive Rating Outlook for 2024
December 15, 2023
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Amazon.com ($NASDAQ:AMZN) has recently received a positive rating outlook for 2024 from analysts. This upgrade is based on the company’s strong performance over the last few years. Amazon is an American multinational technology company based in Seattle, Washington. It specializes in e-commerce, cloud computing, digital streaming, and artificial intelligence.
Additionally, Amazon’s cloud computing service, Amazon Web Services (AWS), has become a major driver of the company’s growth and profitability. Analysts have been impressed by Amazon’s ability to continue to drive revenue and profits in spite of a challenging economic environment. They have cited the company’s strong balance sheet and its ability to attract and retain high-quality customers as key factors in their positive outlook for 2024. Additionally, Amazon is well-positioned to benefit from the growing trend of digitalization and the increasing demand for AI-based services and products. Overall, analysts believe that Amazon has a bright future ahead of it with the potential for continued strong growth. The company’s long history of innovation and its commitment to providing superior customer service are expected to help it remain a leader in the online retail space.
Share Price
On Wednesday, AMAZON.COM stock opened at $148.1 and closed at $148.8, up by 0.9% from the prior closing price of $147.5. This jump in stock price came as the company received a positive rating outlook for 2024 from equity analysts. This is reflective of the increasing confidence in the tech giant’s future prospects and its ability to continue to grow and serve as a major player in the digital economy. AMAZON.COM’s strong performance in the last year has been attributed to its expansion into new markets, its focus on customer satisfaction, and its commitment to innovation.
Analysts have also credited AMAZON.COM’s ability to scale quickly and efficiently, as well as its reliable supply chain management, for the company’s continued success. With a positive outlook for 2024, investors can be confident that AMAZON.COM will remain a leader in the digital economy. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Amazon.com. More…
| Total Revenues | Net Income | Net Margin |
| 554.03k | 20.08k | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Amazon.com. More…
| Operations | Investing | Financing |
| 71.65k | -48.05k | -9.05k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Amazon.com. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 486.88k | 303.91k | 17.71 |
Key Ratios Snapshot
Some of the financial key ratios for Amazon.com are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.8% | 9.8% | 4.7% |
| FCF Margin | ROE | ROA |
| 3.1% | 9.3% | 3.3% |
Analysis – Amazon.com Stock Intrinsic Value
At GoodWhale, we conducted a comprehensive analysis of AMAZON.COM‘s fundamentals. After combining various financial metrics, our proprietary Valuation Line determined the fair value of AMAZON.COM share to be around $155.0. Currently, the stock is traded at $148.8, which is 4.0% lower than the fair price. This suggests that the stock is undervalued and may be a potential buy opportunity. More…
Peers
Amazon.com Inc is an American multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is considered one of the Big Four technology companies, alongside Google, Apple, and Facebook.
PChome Online Inc is a Taiwanese online shopping company established in 2000. PChome Online is the largest e-commerce platform in Taiwan, with over 60% of the country’s online shopping market share.
The RealReal Inc is an American online luxury resale store headquartered in San Francisco, California. The company sells consigned clothing, accessories, jewelry, watches, and art from a variety of luxury brands.
Zalando SE is a German e-commerce company headquartered in Berlin, that specializes in selling shoes, clothing, and other fashion items. The company was founded in 2008 and has since grown to become one of the largest online fashion retailers in Europe.
– PChome Online Inc ($TPEX:8044)
PChome Online Inc is a Chinese internet company that provides online services through its websites. The company offers a variety of services, including online shopping, online payments, online advertising, and others. PChome Online Inc is listed on the Nasdaq Global Market under the ticker symbol PCLN.
As of 2022, PChome Online Inc had a market capitalization of 5.78 billion US dollars. The company’s return on equity was 3.34 percent. PChome Online Inc is a leading player in the Chinese internet market, with a strong presence in online shopping and online payments. The company is well positioned to benefit from the growing trend of online shopping in China.
– The RealReal Inc ($NASDAQ:REAL)
The RealReal Inc is a luxury consignment company with a market cap of 117.51M as of 2022. The company offers consignment services for luxury items such as clothing, jewelry, and watches. The company has a return on equity of 137.64%.
– Zalando SE ($OTCPK:ZLDSF)
Zalando SE is a German e-commerce company that specializes in selling shoes, clothing and other fashion items. The company was founded in 2008 and is headquartered in Berlin. As of 2022, Zalando SE has a market cap of 5.66B and a return on equity of 4.78%. The company’s main competitors are Amazon, eBay and Alibaba.
Summary
Investment research firm Evercore ISI recently upgraded its rating on Amazon.com, Inc. stock to “Outperform” from “In-Line” based on the company’s strong fundamentals and growth prospects. The analysts are particularly bullish on Amazon’s position for the next four years, predicting strong performance for the company through 2024. They cite Amazon’s leading position in e-commerce, cloud computing, and logistics as fundamental strengths that will continue to drive growth.
They also noted Amazon’s constant innovation with new products and services, as well as its increasing presence in global markets, as factors that should contribute to the company’s success. In summary, the investment firm believes Amazon is set up for success over the next four years, and therefore justifies an upgrade in its rating.
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