Amazon.com (NASDAQ: AMZN) Stock Overview And Price Forecast
Amazon.com Inc. is the world’s largest internet retail and cloud services company with over 137 million active customer accounts. The company was originally a bookseller but has expanded to sell a wide variety of consumer goods. Company products include 1-Click shopping, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, Alexa, and more. Amazon is the third most valuable company in the US market with its current market cap sitting at a staggering $1.63 trillion.
“Two of our kids are now 10 and 15 years old — and after years of being nurtured, they’re growing up fast and coming into their own.” — Jeff Bezos, referring to Prime Video and AWS.
Interestingly, Amazon stock’s price action has been inconsistent with the company’s outstanding performance over the last year. The company benefited greatly from the pandemic as consumer preference shifted toward online commerce from traditional. Amazon’s stock had a seemingly unstoppable rise shortly after the start of the pandemic but then started idling at around $3,200 per share for almost a year now. The company’s stock currently trades at a 2021 forward price-earnings ratio of 58 times.
Amazon had a stellar earnings report for the first quarter of 2021. Their shares were up 3% after reporting, which is a big move for a company of their size. They reported earnings per share of $15.79, which is a solid $6.18 above the consensus estimate. They also reported a huge beat of revenue estimates by 44% on the year totaling $108.52 billion. The revenue growth was spearheaded by the international segment which recorded a 60% year-over-year growth for the quarter. Online stores’ sales totaled $52.9B, which is above the estimates of $50.3B. Their on-demand cloud computing platform AWS net sales were also up 32% on the year to $13.5B, topping the 22.5% growth consensus estimate. Their next earnings report is scheduled for Jul 29, 2021.
