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- 1 Amazon stock is trading at $139.37 with an upsurge of 8.27% in the last 24 hours.
- 2 The company is listed among the most recognizable brands worldwide and a market leader in the e-commerce industry.
- 3 Amazon is the third largest firm in terms of revenues and the fourth tech company to hit a $1.43 trillion market capitalization.
Introduction and History of Amazon Stock
Amazon.com, a customer-focused, innovative, and recognized name in the field of online retailers was founded by Jeff Bezos in 1994. The company entered the market by selling books over an online platform and went public in 1997 with the selling of video cassettes and music.
With time Amazon web services upgraded, adding Alexa, Appstore, Prime, robotics, and pay to the list. Also, the company not only limited its roots to e-commerce and developed impressions in cloud computing, digital streaming, artificial intelligence, and the advertising landscape.
The vision to become the world’s most customer-centric firm helped Amazon continuously evolve from a bookstore to a superstore. Andrew R. Jassy is the current CEO of Amazon appointed during the fourth quarter of 2020, making around $212 Million to $1.3 Million.
Focusing on the stock market, Amazon is a giant player in the field and went public on 15 May 1997 with an initial price of $18.00. Amazon’s stock split occurred on 2 June 1998, adjusted at $0.075.
How Amazon is Fundamentally Strong
The current market capitalization of Amazon is $1.432 Trillion and the company employs around 1.541 Million employees contributing to the business growth (source of employment). The annual revenue of Amazon rose from $469.82 Billion in 2021 to $513.98 Billion in 2022. The Price earning ratio (TTM) of Amazon is 102.51 and the basic EPS is $1.27. As per the trading view focusing on the financial health, an enhancement in the firm’s debt from $132.32 Billion in 2021 to $154.97 in 2022 is measured whereas, a decline is observed in the free cash flow from -14.73 Billion to -16.89 Billion in 2022. Also, the cash and equivalents boomed from $36.48 Billion in 2021 to $54.25 Billion by the end of 2022.
2023 Quarterly Financials
Second quarter results represent strong growth and progress of Amazon.com in terms of sales, operating income, net income, and revenues. The net sales of the company increased by 11%, from $121.2 Billion in the second quarter of 2022 to $134.4 Billion in 2023. Also, the sales of North America, International, and AWS segments increased by 11%, 10%, and 12% respectively. A profit of $4.4 Billion in the operating income was measured in the second quarter when compared to the second quarter of 2022. The operating income was $3.3 Billion in 2022’s second quarter and reached $7.7 Billion in the second quarter of 2023. Another indicator improved the overall financials of Amazon by the end of 2023’s second quarter. The free cash flow upsurge to an inflow of $7.9 Billion for the 12 months, in comparison with an outflow of $23.5 Billion for the 12 months ending on 30 June 2022. In short, the company succeeded in lowering the costs to assist in the fulfillment network.
2023 Stock Outlook
The net sales of the company for the third quarter are predicted to range between $138.0 Billion to $143.0 Billion and are expected to grow between 9% to 13% considering 2022’s third quarter. Expected sales anticipate a beneficial influence of around 120 basis points from foreign exchange rates. Similarly, the operating income is assumed to range between $5.5 Billion and $8.5 Billion and is expected to take a hike in comparison with $2.5 Billion in the third quarter of 2022.
Technical Analysis Of Amzn Stock
As per the Technical Analysis of stock, the price of Amazon stock is on a roller coaster in recent days. From the level of $129, it takes a jump broke 50 SMA, and reaches on $143 level.
Amazon.com, Inc. ( NASDAQ: AMZN) has continuously seen its stock price rise for the past three months, gaining 33.85%. Currently, AMZN stock is trading at $139.57 and has been trying to continue its bullish momentum.
If it can keep this momentum, the Amazon.com, Inc. price could continue to go up and reach the higher targets. However, if the AMZN price cannot maintain this level and falls, then it might hit the closest support levels.
Presently, Amazon.com, Inc. stock (NASDAQ: AMZN) is trading above the 50 and 200-day SMAs (Simple moving averages), which are supporting the price momentum.
However, if buying volume surge up then the price might conquer supporting SMA’s by making higher highs and make new highs. Hence, the AMZN price is expected to move upward giving bullish views over the daily time frame chart.
The current value of RSI is 64.13 points. The 14 SMA is above the median line at 52.93 points which shows that the Amazon.com, Inc. stock is bullish.
The MACD line at 1.28 and the signal line at 0.9249 are above the zero line. A bullish crossover is observed in the MACD indicator which signals more bullishness for the AMZN stock price.
Technical Levels
- Support Levels: The closest support levels for the Amazon.com, Inc. stock price are $126.77 and $114.38.
- Resistance levels: The closest resistance levels for the AMZN stock price are $147.19 and $154.00.
Conclusion
The strong second quarterly result, good 2023 result, 63.23% year-to-date returns, and strong performance history make AMZN share a diamond choice for long terms investors. However, the technicals of Amazon.com, Inc. (NASDAQ: AMZN) suggest that the investors and traders of the share price are bullish on the 1-D time frame. The price action reflects a bullish perspective at the moment. The technical oscillators of the AMZN stock price also support the bullish trend. The MACD, RSI, and EMA are emphasizing negative signs and imply that the downtrend may continue in the AMZN stock price.
Disclaimer
In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
