NYSE or NASDAQ Analyzation.edited

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Chamberlain College of Nursing *

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Nov 24, 2024

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1 NYSE or NASDAQ Analyzation Name Institution Course Professor Date
2 Why Choose This Company The selected corporation is Amazon. My rationale for selecting the corporation is predicated on better understanding the company's finances to gain insight into financial operations. The managerial position calls for critically analyzing the potential hazards and benefits of the corporation's current approach by analyzing market share, competitive edge, and additional financial indicators. Furthermore, Amazon Incorporation's long history of success and modern technological advances make it a great company to study. Opinions per Referenced Article Several pieces on Amazon as an investment were mostly favorable. The corporation has a "strong second quarter" despite the recession triggered by the COVID-19 pandemic, as per The Wall Street Journal (2023). MarketScreener also received mostly positive assessments from experts and investors, who noted that Amazon had strong fundamentals and was an excellent long-term investment. Karlo (2022) also said Amazon was a "worthy investment" because of its solid foundations and continuing growth despite the worldwide COVID-19 epidemic. Researchers observed that Amazon could leverage contemporary trends such as e-commerce, digital streaming, cloud computing, and machine learning, contributing to its expansion. While the papers included generally supported Amazon as an investment, some disagreeing viewpoints prevailed. According to MarketScreener (2023), Amazon's market share may be endangered shortly due to rising rivalry from companies such as Apple and Walmart. Furthermore, while analysts on Yahoo Finance are generally bullish on Amazon's prospects, they warn that the company's stock is not without risk. They stated that Amazon's stock has lately experienced a significant price increase, and its long-term viability remains dubious.
3 Investment Risk Stock investment is slightly riskier than an investment in other equities in general. While Amazon has tremendous potential for continued expansion and success, it is susceptible to the same economic circumstances as the other equities (Yuen, 2023). This implies that the firm is vulnerable to the stock market like competitors. Since Amazon is the dominating player in the technology field, it may be unable to come up with solutions and adapt to market changes swiftly like its rivals. Size of the Company in Comparison to Rivals Amazon Corporation is a global giant and worldwide corporation. Regarding market capitalization, the firm is the second largest publicly traded corporation in the United States (3rd position globally). The firm is considered the fourth largest source of employment within the United States, with over 800,000 employees globally (Karlo, 2022). Amazon is also a global leader in e-commerce, accounting for 38% of all online sales in 2019. The firm has an impressive market appearance compared to prominent rivals like Walmart and eBay. The firm generates more than $280 billion, surpassing twice the prime competitor's threshold. The willingness to immerse itself in the tech-based innovation of cloud computing makes the corporation a global giant. Besides, the firm has diversification in the market depicted in the vast services and products covered. Company’s Growth Amazon has had enormous expansion owing primarily to its ongoing achievement in e- commerce. Its income has increased from roughly 280 billion dollars to more than 475 billion dollars in 2021 and 2022. This significant rise can be attributed to increased consumer spending due to the epidemic and Amazon's emphasis on extending its product choices and services
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4 ( Amazon Inc. , 2023). Amazon's profits have also increased due to its new machine learning and cloud computing efforts. Researchers anticipate that Amazon will continue to develop gradually, with some forecasting that its sales will top $600 billion towards the end of this year. Profitability Amazon is the world's foremost e-commerce giant, with a market capitalization that exceeds that of the 14 largest US retailers. The e-commerce beast has numerous revenue streams, but its online activities are the most profitable. According to Amazon's most recent full quarterly financial statement, released in October 2022, its net revenues increased by 15% between the third quarters of 2021 and 2022, from $110.8 billion to $127.1 billion. According to Insider Insight, Amazon's global retail e-commerce revenues will be $746.22 billion by 2023. Price-To-Earnings Ratio Research indicated that the corporation price-to-earning ratio stood at 51.16 as of January 26th, 2023. This suggests that a single piece of Amazon stock is fifty times worth its earnings per share. This suggests that shareholders place significant importance on the organization, which may signal that its long-term growth prospects are favorable. Dividend and its Yield Despite the widespread embrace of dividends in the technology sector, not all companies distribute them to investors. Amazon is one of the multinational corporations that does not pay dividends to investors. Amazon has a long history of reinvesting revenues rather than paying out dividends to stockholders. Amazon has been the fastest-growing company, so its lack of a dividend has not hurt investors. Throughout the last decade, the shares of Amazon have risen more than 20% each year. Future Prospects
5 Amazon Incorporation has a bright future. The company has had tremendous sales and profit growth and effective expansion into new markets and offerings. Amazon has announced intentions to create a delivery service, investing extensively in AI and other innovations to increase productivity and provide customers with greater convenience alongside a vast consumer base. Exchange and Ticker Symbol Amazon Corporation is listed on the Nasdaq under the ticker name AMZN. Recommendations For those considering stock investments, it is recommendable to invest in Amazon. The corporation leads and provides innovative products and services, allowing the corporation to grow swiftly while remaining profitable ( Karlo , 2023). The organization is also well-diversified, having a variety of clients and a broad product range. Amazon also has good fundamentals, and its stock has continually increased in value.
6 References Amazon Inc. (2023). Amazon PE ratio 2010-2022 | AMZN. Macrotrends | The Long Term Perspective on Markets. https://www.macrotrends.net/stocks/charts/AMZN/amazon/pe- ratio # Karlo, J. (2023, January 17). Would you still dare to invest in Amazon.com (AMZN)? Yahoo Finance. https://finance.yahoo.com/news/still-dare-invest-amazon-com-184515526.html ? MarketScreener. (2023). Amazon.com, Inc. Market Financials. Stock Market Quotes and News : Equities, Indexes, Commodities, Forex on MarketScreener.com. https://www.marketscreener.com/quote/stock/AMAZON-COM-INC-12864605/financials/ Yuen, M. (2023, January 7). Amazon revenue breakdown by segment (2022Amazon revenue breakdown by segment (2023) . Insider Intelligence. Retrieved January 27, 2023, from https://www.insiderintelligence.com/insights/amazon-revenue/
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