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- 1 AMZN stock fell 3.04% in a week and 55.89% YTD, gaining 12.75% in three months.
- 2 Amazon will restart the shipping unit and enter healthcare.
Amazon.com Inc. (NASDAQ: AMZN) will restart its shipping unit and enter the pharma industry; AMZN stock fell 3.04% in a week. During the COVID-19 pandemic, Amazon had to shut its shipping unit and its restarting now would make it a direct competitor with giants like United Parcel Services Inc. (NYSE: UPS), up by 0.29% at $171.24, and FedEx Corp. (NYSE: FDX) falling 0.85% to $262.65.
Amazon.com Inc. (AMZN) Stock – Strengthening its Financials
Amazon is the newest player in the healthcare arena with plans to sell insulin to diabetes patients for just $35. During the announcement, it was said that the company would use automatic coupons to offer a final price on insulin. To bring transparency to the business, they would offer pharmacy benefit managers (PBMs) directly from the most prominent manufacturer, providing heavy discounts.
If all goes as planned, Amazon Pharmacy should generate handsome revenue. As the pandemic eases, Amazon shipping will now be available in the formerly contiguous U.S., as confirmed on August 18, 2023. During the pandemic, Amazon expanded its logistics to meet the demand but found it in excess capacity. This restart will also help in generating revenue.
Ten Capital Wealth Advisors LLC reduced its stakes in Amazon by 35.8% in Q1 2023, the sold 5,352 shares making the current portfolio worth $993,000. Vanguard Group Inc. raised its position by 1.8% during Q3 2022 and owns 701,550,887 shares worth $79.27 Billion. Many institutional investors and hedge funds altered their positions on Amazon.com.
Amazon.com Inc. (NASDAQ: AMZN) – Technical Analysis
AMZN stock, at press time, is trading at $1333.32, falling by 0.57%; previous close and open were at $133.98 and $131.62, respectively. The 52-week range is from $81.43 to $143.63, hinting that a slight push could create new highs. With an average volume of 63.53 Million shares, the market cap is $1.367 Trillion.
The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is $317.19, showcasing a highly valued stock price. At the same time, the (TTM) earnings per share (EPS) is $0.42, showcasing slight financial weakness. Analysts placed a 2.96 rating for moderate buy and estimated a price target at $159.46 with a 19.7% upside.
Amazon reported previous earnings on August 3, 2023, where the reported revenue of $134.383 Billion surpassed the expected value of $1331.494 Billion by 2.20%. In comparison, the reported earnings of $0.65 per share beat the estimated value of $0.354 per share by 83.66%. These positive earnings caused the AMZN share price to gain nearly 13%.
Compared to the previous quarter, revenue gained 10.53% while EPS jumped by 452.00%. The subsequent earnings will be announced on October 26, 2023, where the revenue shall be around $141.306 Billion while EPS could be $0.566. Amazon Web Services (AWS) stabilization has been decent for Amazon.
AWS gained 12% year-over-year (YoY) due to contract optimization. Operating margins gained 3%, with a YoY jump of 5.7%. Retail subscriptions jumped by 9%, while advertising revenue gained 22% (YoY). Total cash in hand at the end of the most recent quarter (MRQ) is $63.97 Billion, while the total debt has been $174.29 Billion.
Amazon.com (NASDAQ: AMZN) – Candle Exploration
AMZN stock jumped after the earnings announcement creating a gap, but soon after, the price actions came down to fill the gap. Also, AMZN’s share price action has been bullish since March 2023, and the golden crossover in May 2023 supports the rally. When 50EMA crossed 200EMA from below, it formed a golden crossover, bullish for the price in the long run.
If the drop continues, the price shall bounce off 50EMA and try to beat immediate resistance at $141.28 before entering the selling zone. If the price falls below immediate support at $125.65, it shall bounce off from 200EMA of buying zone. The chances of a heavy price drop are slim as the overall momentum is bullish.
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.
