Amazon Stock Analysis 2024 | Summary and Q&A

TL;DR

Amazon stock has seen significant growth over the past year, with positive financial results and projected future growth. However, factors such as dilution and potential market cap could affect risk and reward.

Key Insights

• 👨‍💼 Amazon's financial results indicate consistent sales growth, demonstrating the strength of their business model.
• 🍉 Long-term projections suggest significant revenue growth for Amazon, although linear projections may not account for potential fluctuations.
• 🥶 The company's focus on profitability and free cash flows showcases its commitment to financial management and shareholder value.
• ↩️ The repurchase of shares addresses the issue of dilution but also affects the valuation and potential returns for shareholders.
• 👨‍💼 Amazon's consistent investments indicate a commitment to growth and innovation within their business.
• *️⃣ The risk and reward of investing in Amazon may vary depending on factors such as market cap and growth expectations.
• 🙃 Owning Amazon in a portfolio during recessions or market downturns may be beneficial, considering its strength as a business.
• *️⃣ Value investors may find Amazon attractive when the market cap is 1 trillion or lower, as it presents favorable risk and reward opportunities.

Transcript

good day fellow investors Amazon is definitely a great business but let's check what kind of an investment it is now going into 2024 we have discussed Amazon a year ago where the risk and reward was very positive but the stock price was around 90 and I told you it was a good buy however things have changed now and we can see this that Amazon stock ... Read More

Questions & Answers

Q: What has been the stock price performance of Amazon over the past year?

Amazon's stock has experienced a significant 62% increase in value, outperforming many other companies in the S&P 500.

Q: What is the predicted revenue growth for Amazon in the coming years?

Projections indicate that Amazon's revenue could nearly double over the next six years, showcasing a growth rate of around 10-11% annually.

Q: How does Amazon prioritize profitability and financial management?

While focusing on optimizing free cash flows, Amazon has started to pay attention to net income and aims to repurchase 2% of shares every year to minimize dilution.

Q: What potential risks should investors consider when investing in Amazon?

Factors such as dilution from share buybacks and the possibility of a lower market cap in the future could impact the risk and reward of investing in Amazon.

Summary & Key Takeaways

• Amazon's stock has risen by 62% in the past year, with a market capitalization of 1.52 trillion and a high P/E ratio of 77.

• Financial results show consistent sales growth of 1% year on year for the last quarter and 10% year over year for the trailing 12 months.

• The projected revenue growth for Amazon is around 500 billion currently, with expectations of almost doubling over the next six years.