A Quick Survey of Amazon Stock
Shareholder returns and stock trends
On August 8, Amazon stock yielded a return of -0.24% on volume of 2.9 million shares to close at ~$989.84. Amazon (AMZN) generated investor returns of ~1.1% in the trailing-one-month period and 29.1% in the trailing-12-month period. The company’s stock price lost 0.64% in the trailing-five-day period.
In comparison, Twitter (TWTR), Facebook (FB), Square (SQ), and Alibaba (BABA)—Twitter’s peers in the Internet sector—generated returns of -11.3%, 36.7%, 131.1%, and 85.3%, respectively, in the trailing-12-month period.
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Relative strength index
For the last 14 days, Amazon reported a relative strength index (or RSI) of 35 compared to RSI readings of 15, 68, 47, and 59 recorded by Twitter, Facebook, Square, and Alibaba, respectively, within the same period.
Amazon stock was trading at $989.84, ~3.4% above its 100-day moving average of $957.00, 0.82% below its 50-day of $998.00, and ~2.3% below its 20-day moving average of $1,013.00.
On August 8, Amazon was the second-largest Internet player in terms of market capitalization globally at ~$475.5 billion. In comparison, its peers had the following market cap levels:
- Twitter (TWTR): ~$11.9 billion
- Facebook (FB): ~$497.3 billion
- Square (SQ): ~$9.9 billion
- Alibaba (BABA): ~$403.4 billion
Of the 45 analysts covering Amazon, 39 gave it a “buy” recommendation, two recommended a “sell,” and four recommended a “hold.”
Analysts’ stock price target for the company is $1,140.40, and the median price target for the company is $1,150.00. Amazon is trading at a discount of ~13.9% to its median price target.
Amazon’s cash flow numbers
Amazon has $21.5 billion of cash on hand. Its price-to-cash-flow and price-to-free-cash-flow multiples are 27.9x and 53.7x, respectively.
For the trailing 12 months, Amazon’s EV1-to-cash-flow multiple was 27.1x, and its EV-to-free-cash-flow was 52.2x.
- enterprise value ↩