Why Are People Talking About Investing in Amazon.com (AMZN)?

After moving 0.1% during today's afternoon session, Amazon.com is now trading at a price of $128.15 per share. On average, analysts give it a target price of $170.48.

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally.

Potential Amazon.com Investors Should Analyze the Following:

  • Amazon.com has moved 13.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 0.7. A number between 0 and 1 could mean that the market is undervaluing Amazon.com's estimated growth potential

  • Its Price to Book (P/B) ratio is 7.84

Understanding Amazon.com's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023-01-28 513,983,000 -212,904,000 2 -60.0
2022-02-04 469,822,000 -172,599,000 5 -16.67
2021-02-03 386,064,000 -129,858,000 6 20.0
2020-01-31 280,522,000 -100,445,000 5 0.0
2019-02-01 232,887,000 -81,310,000 5 150.0
2018-02-02 177,866,000 -61,826,000 2

Over the last 6 years, Amazon.com's operating margins have averaged only 4.2%, with a high coefficient of variability of 41.3%. The firm's margins exhibit a relatively stable growth trend of 2.9%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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