Amazon: That’s just great!
Amazon: How can the price performance be evaluated?
Compared to the average annual performance of shares from the same sector (“Consumer Cyclical 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.
Interesting Sentiment on Amazon
Share prices can be assessed by soft factors such as sentiment, in addition to hard factors such as balance sheet data. Our analysts looked at Amazon on social platforms and measured that the comments or findings have been overwhelmingly positive. In addition, social media users around Amazon have been mostly positive over the past day or two. Thus, the stock receives a “Buy” rating for this observation. Furthermore, this analysis was enriched by looking at trading signals. Three concretely calculated signals are available (3 “Sell”, 0 “Buy”), resulting in a “Sell” rating at the level of trading signals. Thus, the editors come to the conclusion that Amazon must be classified as “Buy” in terms of sentiment.
What does the fundamental analysis judge?
The current price-earnings ratio (P/E ratio) of Amazon is at a value of 70.13. The share is thus above the Durschschnitt (approx. 73 percent) compared to values from the sector “Internet & Catalog Retail” (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.
Analysts take a positive view of Amazon
Of a total of 42 analyst ratings from the past twelve months for Amazon stock, 39 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). An average of $386.41 is calculated from the price targets given. 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.
Price evaluation with the help of the RSI
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.
An overview of sentiment
Strong positive or negative swings in Internet communication can be detected precisely and early on with our analysis. However, the mood 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.