Amazon: Bad news without end!
How is Amazon valued fundamentally?
The current price-earnings ratio (P/E ratio) of Amazon is 70.13. The share is thus above the average (approx. 73 percent) compared with values from the “Internet & Catalog Retail” sector (P/E ratio of 40.57). From the perspective of fundamental criteria, Amazon is thus overvalued and consequently receives a “Sell” rating at this level.
The share price performance compared to the market
Compared to the average annual performance of shares from the same sector (“Cyclical Consumer Goods”), Amazon is more than 37 percent below with a return of 3.49 percent. The “Internet & Catalog Retail” sector comes in at a median return over the past 12 months of 72.33 percent. Again, Amazon is well below that at 68.84 percent. This performance of the stock over the past year leads to a “Sell” rating in this category.
What price signals does sentiment send?
Strong positive or negative swings in Internet communication can be detected precisely and early with our analysis. However, sentiment has hardly changed for Amazon in recent weeks. The stock gets a “hold” rating from us for this. Discussion strength measures the attention of market participants in social media. Our programs have not measured any extraordinary activity for Amazon in the past four weeks. Amazon gets a “hold” rating for this. Overall, the stock is therefore rated a “hold” at this level.
RSI for Amazon in the red
To assess whether a security is currently “overbought” or “oversold” the upward and downward movements over time can be put into relation. This provides the so-called Relative Strength Index (RSI), an indicator from technical analysis which is often used in the financial market. We now evaluate Amazon using the shorter-term RSI of the last 7 days as well as the slightly longer-term RSI on a 25-day basis. First, the 7-day RSIthis is currently at 70.88 points, which means that the Amazon stock is overbought. Consequently, it receives a “sell” rating. Now to the RSI25Contrary to the RSI7, Amazon is neither overbought nor -sold here. For the RSI25, the security is therefore rated “Hold”. This gives Amazon a “Sell” rating for this point in our analysis.
Why does the price picture disappoint?
On the basis of the moving average price, Amazon is currently a “Sell”. This is because the value’s GD200 runs at the level of USD 126.34, which means that the share price (USD 93.95) is -25.64 percent above this trend signal. This corresponds to the classification as “Sell”. Based on the past 50 days, this results in a moving average price (GD50) of USD 107.19. This in turn corresponds to a deviation of -12.35 percent from the perspective of the share price itself. This means that the share is a “Sell” stock over this period. Overall, this corresponds to a “Sell” rating.
Amazon: What price target do the banks call out?
Of a total of 42 analyst ratings from the past twelve months for Amazon stock, 39 ratings are “Buy,” 1 “Hold” and 2 “Sell.” That averages out to a “Buy” rating for the security. In reports of more recent date, the analysts come to the same assessment on average – the bottom line is that the rating for the Amazon security from the last month is “Buy” (4 Buy, 1 Hold, 0 Sell). From the price targets given, an average of $386.41 is calculated. This means that the share could rise by 311.29 percent from the last closing price (USD 93.95). The recommendation derived from this is “Buy”. In summary, Amazon thus receives a “buy” rating from the analysts.