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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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