Amazon.com, Inc. (NASDAQ: AMZN) shares are trading lower after the company reported worse-than-expected Q2 sales results and issued Q3 2021 net sales guidance below estimates. Amazon reported quarterly sales results of $113.08 billion which missed the analyst consensus estimate of $115.07 billion.
Full Answer
What will Amazon stock price be in May 2021?
Amazon stock predictions for May 2021. The forecast for beginning of May 3594. Maximum value 4000, while minimum 3548. Averaged Amazon stock price for month 3729. Price at the end 3774, change for May 5.01%.
Why did Amazon stock fall on Tuesday?
Shares of Amazon ( AMZN -2.52%) fell on Tuesday after interest rates rose and an analyst warned that rising labor costs could pressure the e-commerce giant's profits. As of 2:45 p.m. EDT today, Amazon's stock was down 2.5%. Growth stocks like Amazon are valued based upon their expected future earnings and cash flows.
Why did Morgan Stanley cut Amazon's stock price forecast?
On Tuesday, Morgan Stanley analyst Brian Nowak cut his price forecast on Amazon's shares from $4,300 to $4,100. Nowak warned that the company's ballooning employee compensation expenses could dent its operating income by as much as 16% this year and 19% in 2022.
How did Amazon's net sales grow 27% in Q1?
Amazon's net sales jumped 27% year over year to a staggering $113.1 billion, fueled by strong gains in its cloud computing and advertising businesses. Amazon Web Services (AWS) delivered revenue growth of 37%, up from 32% in the first quarter.
Why is Amazon stock going down?
Amazon stock plunged after posting its first-quarter earnings report on April 29 that showed a steep loss, made worse by a revenue prediction well short of expectations. Amazon (AMZN) blamed the pandemic, inflation and Russia's invasion of Ukraine for its weak performance, among other things.
Is Amazon overvalued 2021?
Amazon was undervalued in 2021, while the Nasdaq Composite, which had an exceptional year, was overvalued. A market-scale drop hit the overinflated Nasdaq much harder than AMZN shares.
Will Amazon split soon?
By Yaёl Bizouati-Kennedy. Amazon's Board approved the 20-for-1 stock split announced in March at the 2022 Annual Meeting of Shareholders on May 25. The split will enable more investors to afford to invest in Amazon, and it will broaden the company's audience and reach.
Where is Amazon stock headed?
Stock Price Forecast The 44 analysts offering 12-month price forecasts for Amazon.com Inc have a median target of 175.00, with a high estimate of 215.00 and a low estimate of 107.00. The median estimate represents a +63.83% increase from the last price of 106.82.
Should I buy Amazon stock right now?
Amazon (NASDAQ:AMZN) stock is a good buy now because its stock split could provide short term momentum, it has one of its lowest valuations in recent years, and AWS remains a great business with a lot of growth left.
Is Amazon in financial trouble?
Income Statement. We see that Amazon's financials have deteriorated some compared to last year. Revenue growth expanded at only about 7% YoY, its slowest pace in decades. Operating expenses grew by more than 13% YoY, illustrating higher costs due to inflation and other variables.
Is Amazon going to split in 2022?
Amazon isn't the only big player with a split in 2022, as Nintendo and Alphabet both have their own splits planned as well.
Is it good to buy a stock before it splits?
It's important to note, especially for new investors, that stock splits don't make a company's shares any better of a buy than prior to the split. Of course, the stock is then cheaper, but after a split the share of company ownership is less than pre-split.
Does Amazon pay a dividend?
Amazon's lack of a dividend certainly has not hurt investors to this point, as Amazon has been a premier growth stock. Over the past 10 years, Amazon stock generated returns above 30% per year. But for income investors, Amazon may not be an attractive option due to the lack of a dividend payment.
What will Amazon stock be in 2024?
Amazon (AMZN) Stock Price Prediction For 2024 It predicts that the stock will be worth $3,516 in mid-2024 and will increase to about $3,875 at year-end.
What is the best company to invest in right now?
The undervalued stocks of high-quality companies are compelling investments today. Investors have endured a lot of market uncertainty during 2022 so far....The 10 Best Stocks as of June 2022Equifax (EFX)Anheuser-Busch InBev SA/NV ADR (BUD)Guidewire Software (GWRE)ServiceNow (NOW)Tyler Technologies (TYL)Adobe (ADBE)More items...•
What is Amazon's target price?
Stock Price Target AMZNHigh$215.00Median$175.00Low$107.00Average$175.60Current Price$107.40
What happened
Shares of Amazon.com ( AMZN -3.58% ) fell on Friday following the release of the e-commerce giant's second-quarter results. As of 3:15 p.m. EDT, Amazon's stock price was down more than 7%.
So what
Amazon's net sales jumped 27% year over year to a staggering $113.1 billion, fueled by strong gains in its cloud computing and advertising businesses. Amazon Web Services (AWS) delivered revenue growth of 37%, up from 32% in the first quarter.
Now what
Chief Financial Officer Brian Olsavsky said during a conference call with analysts that Amazon's e-commerce growth is slowing as the economy reopens. "I think the impact of people getting vaccinated and getting out in the world, not only shopping offline, but also living life and getting out, it takes away from shopping time," Olsavsky said.
What happened
Shares of Amazon ( AMZN 0.92% ) fell on Tuesday after interest rates rose and an analyst warned that rising labor costs could pressure the e-commerce giant's profits.
So what
Growth stocks like Amazon are valued based upon their expected future earnings and cash flows. When interest rates increase, investors typically discount their profit projections at a higher rate to account for the larger yields they can earn on bonds and other fixed-income investments.
NASDAQ: AMZN
With the yield of 10-year Treasury notes surging above 1.5% in recent days, the prices of many growth stocks have fallen in kind.
Now what
While it's certainly possible that Amazon could deliver lackluster performance in the quarters ahead, investors will likely be best served by adopting a longer-term perspective. Notably, Nowak's reduced price target still represents potential gains to shareholders of roughly 24% from the stock's current price near $3,300.
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How many products did Amazon sell during the holiday season?
Robust performance delivered by Amazon during the holiday season drove top-line growth. Notably, it sold more than a billion products under the categories of toys, electronics, home, fashion, beauty and personal care across the world during the holiday shopping period.
When did Zacks discover earnings estimate revisions?
In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com. Learn More.
How much is cash equivalent in 2020?
As of Dec 31, 2020, cash and cash equivalents were $42.1 billion compared with $29.9 billion as of Sep 30, 2020. Further, marketable securities totaled $42.3 billion at the end of the fourth quarter, up from $38.5 billion at the end of the third quarter.
Topline
Shares of Amazon fell as much as 8% Friday after the e-commerce juggernaut disclosed a massive fine from European regulators for allegedly breaking regional privacy laws and posted second-quarter earnings results that failed to meet Wall Street expectations, putting the longtime market leader on track for its worst day in more than a year.
Key Facts
As of 11:15 a.m. EDT, Amazon stock has plunged 7% Friday to about $3,349.50, pushing the firm's market capitalization down below $1.7 trillion and wiping out nearly $130 billion from a closing level above $1.8 trillion Thursday.
Crucial Quote
"Consumers' online shopping levels are returning to more normal levels as they shift some spending to other entertainment sources and offline shopping," Morningstar analyst Dan Romanoff said in a Friday note. "Meanwhile, the company continues to add capacity [and costs]
Surprising Fact
Shares of Amazon are now down more than 10% from a record closing high of $3,719 earlier this month.
Tangent
Amazon far underperformed the broader market Friday. The Dow Jones Industrial Average, which doesn't include Amazon, ticked down just 0.2%, while the S&P 500, which counts the retail giant as its third-largest component, fell 0.4%.
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Not a great start to 2021
In the past decade, on average, Amazon stock produced a bit over 6% of returns in the first quarter – which is comparable to its peer Apple’s track record. By comparison, therefore, AMZN’s performance has been quite disappointing so far this year.
Ebbs and flows
Driving Amazon stock up and down since the start of the year were a few macro-level and company-specific factors. Below are Amazon’s best and worst days of performance that help to explain the stock’s journey through this challenging first quarter.
Twitter speaks
Amazon stock did not have an outstanding quarter of performance, but neither did most of the top names within the Nasdaq. Given the recent weakness, I asked Twitter for an opinion: what large-cap, growth name seems to be the better pick for the second quarter of 2021?
