0R15 9025.0 0.0% 0R1E 9410.0 0.0% 0M69 None None% 0R2V 247.99 9682.643% 0QYR 1567.5 0.0% 0QYP 439.3701 -2.9016% 0RUK None None% 0RYA 1597.0 1.2682% 0RIH 195.55 0.0% 0RIH 191.4 -2.1222% 0R1O 225.5 9683.0803% 0R1O None None% 0QFP 10475.8496 107.8542% 0M2Z 252.573 0.2373% 0VSO 33.0 -7.3164% 0R1I None None% 0QZI 622.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 222.05 -4.1318%
Amazon.com Inc. (NASDAQ: AMZN) provides a range of products and services to customers. Merchandise and material acquired for resale, as well as items sold by third-party merchants, are available through its storefronts. It also creates and produces media content, as well as manufacturing and selling electronic gadgets including the Kindle, Fire tablet, Fire TV, Echo, and Ring. North America, International, and Amazon Web Services are its three segments (AWS).
Recent Developments
Key Takeaways from Q1FY22 Financial Results
Balance Sheet & Liquidity Position
Key Risks
Second-Quarter Guidance for 2022
Top 10 shareholders
The top 10 shareholders together form around 33.50% of the total shareholding, while the top 4 constitute the maximum holding. Bezos and The Vanguard Group, Inc. hold the maximum stake in the company at 9.80% and 6.68%, respectively, as also highlighted in the chart below:
Source: REFINITIV, Analysis by Kalkine Group
Valuation Methodology: EV/Sales Multiple - based Relative Valuation
Source: Analysis by Kalkine Group
*% Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation
Over the past six months, AMZN's share price has corrected by 38.86%. The stock is currently leaning towards the lower end of its 52-week range of USD 101.26 to USD 188.65 We have valued the stock using the EV/Sales multiple-based relative valuation method and arrived at a target price of USD 103.67. We believe that the company is trading at a premium from its peer's average considering strong fundamentals, competitive advantages in profitability margins, and a good cash position gives bullish estimates for the upcoming near future.
Considering the strong fundamentals, robust top-line results, positive outlook, associated risks, and current valuation, we give a "Buy" recommendation on the stock at the closing price of USD 103.67 as of June 13, 2022.
One Year Technical Chart, as of June 13, 2022. Data Source: REFINITIV, Analysis by Kalkine Group
Technical Analysis Summary:
*Entry Price as of June 13, 2022.
Technical Indicators Defined
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.
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