NYSE or NASDAQ Analyzation.edited
docx
keyboard_arrow_up
School
Chamberlain College of Nursing *
*We aren’t endorsed by this school
Course
1510
Subject
Finance
Date
Nov 24, 2024
Type
docx
Pages
6
Uploaded by DeaconMusicQuail4
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
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
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/
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Documents
Related Questions
GP
You
Write a post providing us with the context for the resources of adopting innovative technologies that can lead to streamlined processes, real-time insights, and increased focus on strategic planning technological advancements in the accounting and finance profession have required finance professionals to adapt and expand their skill sets. Those who can adapt can support business growth and discover better career opportunities selected by identifying the field of study of accounting and finance and specifying an associated profession if relevant. Explain in two separate sections how this could be applied to the criteria of validity checklist to determine the validity of each resource. Try to be as thorough as possible with the questions listed under each heading on the checklist. If unable to make a determination about any of the criteria, be sure to explain that, too.
arrow_forward
Referencing the scenario provided in Assessment 1, and following the guidance provided by the Strategic consultant, Maria and her team are now prepared to proceed with finalizing their business plan to launch their company. Considering how competitive the business sector is today, it is important that they are aware of their alternative organizational strategies. It is also important that they understand how to develop a sustainable competitive advantage, so as to remain financially viable. The group is considering utilizing the strategy formulation framework to aid in developing the company and its products. Further to discussion with the Strategic Consultant, Maria is aware that there are certain habits that strategic leaders must encompass but is not sure what they are. For this assessment, your group is to assume the role of Maria and her team. In doing so, you are expected to complete the following:
3. Organizational Strategya) Based on the categories of alternative organizational…
arrow_forward
Referencing the scenario provided in Assessment 1, and following the guidance provided by the Strategic consultant, Maria and her team are now prepared to proceed with finalizing their business plan to launch their company. Considering how competitive the business sector is today, it is important that they are aware of their alternative organizational strategies. It is also important that they understand how to develop a sustainable competitive advantage, so as to remain financially viable. The group is considering utilizing the strategy formulation framework to aid in developing the company and its products. Further to discussion with the Strategic Consultant, Maria is aware that there are certain habits that strategic leaders must encompass but is not sure what they are. For this assessment, your group is to assume the role of Maria and her team. In doing so, you are expected to complete the following: Organizational Strategya) Based on the categories of alternative organizational…
arrow_forward
Write a post providing us with the context for the resources of adopting innovative technologies that can lead to streamlined processes, real-time insights, and increased focus on strategic planning technological advancements in the accounting and finance profession have required finance professionals to adapt and expand their skill sets. Those who can adapt can support business growth and discover better career opportunities selected by identifying the field of study of accounting and finance and specifying an associated profession if relevant.Explain in two separate sections how this could be applied to the criteria of validity checklist to determine the validity of each resource.
arrow_forward
Analysis on the Role of Financial Management Milton Friedman has once popularly said "The social responsibility of business is to increase its profits; here is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays in the rules of the game, which is to say, engages in open and free competition, without deception or fraud." Do you agree or disagree with Friedman's arguments? Please provide your thoughts by considering the goals of Financial management.
arrow_forward
Give three reasons why accountants need to be ethical in their duties in regards to preparation of financial statements. Explain the importance of these ethics to the companycompliance issues for emerging growth companies. Respond to this question: Is SOX so cumbersome that it limits economic growth of new businesses?
arrow_forward
The CEO and his top managers have asked themselves two important questions: a. do customers value what the company is providing; and b. can the company make money doing that? This group is developing a ________.
A.
business model
B.
BCG matrix
C.
competitive advantage
D.
strategy
arrow_forward
Give typing answer with explanation and conclusion
arrow_forward
Answer it precisely and clear format
arrow_forward
None
arrow_forward
Please correct answer and don't use hand rating
arrow_forward
Please share what variables/factors that you find most important or relevant to informing the decisions facing management within the scenario.
Acquiring the competition is often an option to penetrate untapped markets, increase market share, and realize elevated stock performance. As the CFO, you have identified a clear opportunity to become the dominant leader in retail pharmaceutical sales through the acquisition of your principal competitor. The key capital investment trade-off decision facing the organization is whether your organization should acquire the competitor or expand by building new stores throughout the continental United States. What factors will influence your decision?
arrow_forward
THEORY PROBLEM
Explain why accounting students should study Accounting Information Systems?
Explain the Value Chain and also explain how Information Technology plays an important role in the Value Chain.
Briefly describe the types of users of the SIA and what are the benefits of the output of the AIS for their work or profession?
One of the characteristics of useful information is that it must be timelines and complete. Which is more important, timely but incomplete information, or complete information, but too late? Give an example!
Briefly describe the purpose of internal control and provide an example of an internal control application for that purpose!
arrow_forward
In the rapidly evolving technological landscape, how can companies ensure that their chosen computerized accounting systems are scalable to accommodate business growth and adaptable to emerging technologies? What considerations should organizations take into account to future-proof their accounting systems against technological obsolescence and changes in regulatory requirements?
arrow_forward
Which of the following are examples of financial objectives that a company might choose to pursue?
A Provision of good wages and salaries
B Restricting the level of gearing to below a specified target
C Dealing honestly and fairly with customers on all occasions
D Producing environmentally friendly products
Which of the following is true?
A Management accounting is highly regulated
B Financial accounting is highly regulated
C Management accounting is externally focused
D Financial accounting is only internally communicated
Which of the following is NOT a connected stakeholder?
A Shareholders
B Customers
C Competitors
D Local community…
arrow_forward
1- Explain how you can assess the support for corporate innovation; showing what questions can be asked in order to do the assessment process.
2- What are the rules for an innovative environment?
3- Explain briefly the "Entrepreneurship Theory".
4- Define the following terms:
a-Cognition
b-Social Cognition Theory
c-Entrepreneurial Cognition
d-Cognitive Adaptability
e-Metacognitive Model
arrow_forward
Analysse how ethical business practices and corporate social responsibility initiatives can contribute to long term
sustanable economic development. Provide examples of how your workplace, or an organisation of your choice, can
successfully integrates ethics, CSI and CSR into its current business model. Discuss the impact this will have on its
financial performace and reputation.
arrow_forward
Incorporating Stakeholder Impacts into Business SustainabilityAnalyses and DecisionsJack’s Apps Company researches, develops, and sells traditional applications (i.e., apps) formiddle-aged mobile phone device users. In an attempt to tap into the large young adult appmarket to boost sales and advertising revenues, Jack’s CFO, Daniel, is considering hiringstudents from area high schools and universities to drastically increase the innovativeness ofthe company’s apps. Specifically, Daniel hopes that Jack’s new student employee pool will makeJack’s next wave of phone apps inventions popular with young adults by providing innovativeservices, such as exchanging payments for late-night food deliveries, arranging informal datingand other social gatherings, exchanging perspectives on different professors, and identifyingunusual debit card purchase patterns to assist with early fraud detection notification. Basedon cost estimates from Jack’s finance team and surveys of its new target customers…
arrow_forward
1. The DuPont equation
Corporate decision makers and analysts often use a particular technique, called a DuPont analysis, to better understand the factors that drive a company’s financial performance, as reflected by its return on equity (ROE). By using the DuPont equation, which disaggregates the ROE into three components, analysts can see why a company’s ROE may have changed for better or worse and identify particular company strengths and weaknesses.
The DuPont Equation
A DuPont analysis is conducted using the DuPont equation, which helps to identify and analyze three important factors that drive a company’s ROE. According to the equation, which of the following factors directly affect a company’s ROE? Check all that apply.
Efficiency in use of total assets
Market-to-book-value ratio
Operational efficiency
Most investors and analysts in the financial community pay particular attention to a company’s ROE. The ROE can be calculated simply by…
arrow_forward
Question 1: What Would Your Accountant Say?
The chief executive officer of a business start-up wants the firm to acquire an accounting information system. In response to this request, the firm’s purchasing officer stated, “We should put out bids for an AIS and select the least expensive bid that comports with our existing hardware.” You are the chief accounting officer for the company and your strongly disagree with the purchasing officer's plan. Why?
arrow_forward
Case Study of Financial Accounting: The growing emphasis on environmental, social, and governance (ESG) factors in corporate reporting has prompted discussions about the integration of sustainability measures into traditional financial accounting frameworks. Evaluate the potential benefits and challenges of incorporating non-financial performance indicators into standard accounting practices. Additionally, consider the implications for comparability and the reporting of a company's overall performance and value creation.
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Related Questions
- GP You Write a post providing us with the context for the resources of adopting innovative technologies that can lead to streamlined processes, real-time insights, and increased focus on strategic planning technological advancements in the accounting and finance profession have required finance professionals to adapt and expand their skill sets. Those who can adapt can support business growth and discover better career opportunities selected by identifying the field of study of accounting and finance and specifying an associated profession if relevant. Explain in two separate sections how this could be applied to the criteria of validity checklist to determine the validity of each resource. Try to be as thorough as possible with the questions listed under each heading on the checklist. If unable to make a determination about any of the criteria, be sure to explain that, too.arrow_forwardReferencing the scenario provided in Assessment 1, and following the guidance provided by the Strategic consultant, Maria and her team are now prepared to proceed with finalizing their business plan to launch their company. Considering how competitive the business sector is today, it is important that they are aware of their alternative organizational strategies. It is also important that they understand how to develop a sustainable competitive advantage, so as to remain financially viable. The group is considering utilizing the strategy formulation framework to aid in developing the company and its products. Further to discussion with the Strategic Consultant, Maria is aware that there are certain habits that strategic leaders must encompass but is not sure what they are. For this assessment, your group is to assume the role of Maria and her team. In doing so, you are expected to complete the following: 3. Organizational Strategya) Based on the categories of alternative organizational…arrow_forwardReferencing the scenario provided in Assessment 1, and following the guidance provided by the Strategic consultant, Maria and her team are now prepared to proceed with finalizing their business plan to launch their company. Considering how competitive the business sector is today, it is important that they are aware of their alternative organizational strategies. It is also important that they understand how to develop a sustainable competitive advantage, so as to remain financially viable. The group is considering utilizing the strategy formulation framework to aid in developing the company and its products. Further to discussion with the Strategic Consultant, Maria is aware that there are certain habits that strategic leaders must encompass but is not sure what they are. For this assessment, your group is to assume the role of Maria and her team. In doing so, you are expected to complete the following: Organizational Strategya) Based on the categories of alternative organizational…arrow_forward
- Write a post providing us with the context for the resources of adopting innovative technologies that can lead to streamlined processes, real-time insights, and increased focus on strategic planning technological advancements in the accounting and finance profession have required finance professionals to adapt and expand their skill sets. Those who can adapt can support business growth and discover better career opportunities selected by identifying the field of study of accounting and finance and specifying an associated profession if relevant.Explain in two separate sections how this could be applied to the criteria of validity checklist to determine the validity of each resource.arrow_forwardAnalysis on the Role of Financial Management Milton Friedman has once popularly said "The social responsibility of business is to increase its profits; here is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays in the rules of the game, which is to say, engages in open and free competition, without deception or fraud." Do you agree or disagree with Friedman's arguments? Please provide your thoughts by considering the goals of Financial management.arrow_forwardGive three reasons why accountants need to be ethical in their duties in regards to preparation of financial statements. Explain the importance of these ethics to the companycompliance issues for emerging growth companies. Respond to this question: Is SOX so cumbersome that it limits economic growth of new businesses?arrow_forward
- The CEO and his top managers have asked themselves two important questions: a. do customers value what the company is providing; and b. can the company make money doing that? This group is developing a ________. A. business model B. BCG matrix C. competitive advantage D. strategyarrow_forwardGive typing answer with explanation and conclusionarrow_forwardAnswer it precisely and clear formatarrow_forward
- Nonearrow_forwardPlease correct answer and don't use hand ratingarrow_forwardPlease share what variables/factors that you find most important or relevant to informing the decisions facing management within the scenario. Acquiring the competition is often an option to penetrate untapped markets, increase market share, and realize elevated stock performance. As the CFO, you have identified a clear opportunity to become the dominant leader in retail pharmaceutical sales through the acquisition of your principal competitor. The key capital investment trade-off decision facing the organization is whether your organization should acquire the competitor or expand by building new stores throughout the continental United States. What factors will influence your decision?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College