Amazon.com, Inc. (AMZN Stock) is riding the AI bandwagon and has rallied 46.84% year-till-date. Although Warren Buffet seems worried about AI, he is betting strongly on them. Berkshire Hathaway’s holding reveals heavy investment in companies developing AI technology. Several institutional investors and hedge funds altered their positions in the company.
Amazon.com Inc. (AMZN Stock) – Financial Analysis
Platform Technology Partners contracted their position in Amazon by 1.6% in Q1 2023. It previously owned 49,011 shares and sold 813 of them. The investment advisory firm’s portfolio has 2.5% of AMZN shares, worth $5.06 million. Vanguard Group Inc. increased its position by 1.8% in Q3 2022 and now owns $79 billion worth of stocks in the e-commerce giant. Several other companies also altered their positions in Amazon.com, Inc.
The e-commerce and cloud computing giant Amazon received clearance from Britain’s competition regulator regarding the acquisition of iRobot Corporation for $1.7 Billion. The Competition and Market Authority (CMA) argued that the deal will not cause competition concerns. However, the E.U. antitrust regulators will decide on whether to clear the deal by July 6, 2023. It is possible that the U.S. Federal Trade Commission might file an antitrust lawsuit against Amazon, regarding acquisition.
At press time, AMZN stock is trading at $125.49 with a drop of 1.27%, and previous close and open were at $127.11 and $127.71 respectively. The 52-week change comes with a rise of 15.47%, with a quarterly rally of 25.75%. The trailing twelve-month (ttm) price-to-earnings ratio is 306.07, placing it on the overvalued shelf. Earnings per Share in the same time frame is $0.41.
With an average volume of 66.19 Million shares, the market cap stands strong at $1.288 trillion. Analysts placed the price target at $145.28 with a 15.8% upside and gave a 2.45 rating for moderate buy.
The last earnings were reported on April 27, 2023, when revenue beat the estimates by 2.21% and was reported to be $127.358 billion. The estimated amount was $124.603 billion, thereby resulting in a surprise of $2.755 billion. Quarterly change in revenue swelled by 9.37% to $127.36 billion, while the ttm revenue was $524.9 billion.
Net income hiked by 182.52% to $3.17 billion, while the net profit margin swelled by 175.45% to 2.49. Profit margin jumped by 0.82% (ttm) and operating margin increased by 2.54%. Gross profit was reported to be $225.15 billion. Total cash in hand at the end of the most recent quarter (mrq) is $64.41 Billion, with a debt of $178.55 billion.
Amazon.com Inc. (AMZN Stock) – Candle Exploration
AMZN share price has been going north with a positive momentum since March 2023. However, since the RSI of 62.52 is close to the overbought range, price action has been wobbling in a range for the last few trading sessions. It is likely that it would consolidate below the supply zone for some time.
The next strong momentum shall come after the breakout of the supply zone, and the next earnings could play a pivotal role. If the price drops, it could bounce off immediate resistance, and possibilities of dropping below the demand zone are scarce for now.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/20/amzn-stock-rallying-strong-while-buffet-favors-ai-stocks/