Amazon(dot)com Inc. (NASDAQ: AMZN) is optimistic about the upcoming Prime Days on July 15 and 16, 2023. AMZN stock is up by 2.89% premarket. The company heavily advertises the event on every platform, and people expect exciting deals. Experts believe the total sales during Prime Days might exceed $15 Billion this year.
Amazon(dot)com Inc. (AMZN Stock) – Financial Analysis
If the predictions prove accurate and Amazon’s sales cross the $15 Billion mark, it might not mean that the consumers are doing well. Prime Day this year will come amid inflationary pressures and a bleak macroeconomic outlook in the US.
Proposed interest rate hikes and issues surrounding student loans might limit the spending limits of the average U.S. customer. Keeping the US macroeconomic outlook aside, the company could generate substantial revenue worldwide. If the speculations prove to be accurate, investors could also have some benefits.
Patriot Financial Group Insurance Agency LLC raised stakes in Amazon by 11.2% in Q1 2023; the fund owns 380,332 shares worth $3.928 Million. Vanguard Group Inc. also lifted its position and owns 701,550,877 shares worth $79.27 Billion. State Street Corp raised its position in Amazon by 1.0% in Q3, 2023, and owns 329,849,003 shares worth $37.272 Billion.
NASDAQ: AMZN is trading at $133.61 at press time after gaining 2.11%; previous close and open were at $130.80 and $134.04, respectively. The 52-week range is from $81.43 to $134.04, meaning the current price could break the high soon. With an average volume of 64.08 million shares, the market cap is $1.369 Trillion.
The trailing twelve-month (ttm) price-to-earnings (P/E) ratio is 310.21, indicative that the stock is highly overvalued. Also, the (ttm) earnings per share (EPS) is $0.43. Analysts placed a 2.95 rating for moderate buy and estimated a price target at $144.93 with an upside of 8.7%.
The last earnings were reported on April 27, 2023, where the reported revenue of $127.358 Billion surpassed the expected value of $124.603 Billion by 2.21%. Also, the earnings of $0.31 per share exceeded the expected value of $0.213 by 45.04%. The subsequent earnings are scheduled on July 27, 2023, with expected revenue of $131.218 Billion and earnings of $0.354 per share.
The (ttm) revenue is reported to be $524.9 Billion, and the year-over-year (YoY) quarterly revenue growth is 9.40%. Total cash in hand at the end of the last quarter is $64.41 Billion, while the total debt is $178.55 Billion. Amazon reported its (ttm) gross profit at $225.15 Billion.
Amazon(dot)com Inc. (AMZN Stock) – Candle Exploration
A steep ascending trendline and upward-moving EMA hint that the price might enter the supply zone soon. But the RSI of 65.32 getting close to the overbought zone might hinder the expected rally. A strong northbound momentum would be possible if the price crosses and sustains over the $146.81 mark.
Prime Days and the revenue influx, which is expected along with it, might push the price into the supply zone but can not guarantee sustenance. If the price drops, it might first battle the trendline itself while the immediate support at $110.16 would be the last line of defense before the price can enter the demand zone.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/07/13/amazon-com-inc-amzn-stock-can-prime-days-start-a-prime-rally/