Šeštadienis, 15 vasario, 2025
US Stocks

The Ultimate Guide: When to Buy Amazon Stocks for Maximum Returns

Ever wondered when is the best time to buy Amazon stocks? With its robust financial performance and market dominance, timing your investment could make all the difference. Dive into our latest analysis to uncover key insights and strategic tips for maximizing your returns.

Amazon.com, Inc. is a global e-commerce giant that operates through three main segments: 1. North America: This segment includes retail sales, subscriptions, and other services in North America. 2. International: This segment covers retail sales, subscriptions, and other services outside North America. 3. Amazon Web Services (AWS): This segment provides cloud computing services to individuals, companies, and governments worldwide.

Financial Performance

The financial results for its third quarter ended September 30, 2024.

Net sales increased 11% to $158.9 billion in the third quarter, compared with $143.1 billion in third quarter 2023.

  • North America segment sales increased 9% year-over-year to $95.5 billion.
  • International segment sales increased 12% year-over-year to $35.9 billion.
  • AWS segment sales increased 19% year-over-year to $27.5 billion.

Operating income increased to $17.4 billion in the third quarter, compared with $11.2 billion in third quarter 2023.

Net income increased to $15.3 billion in the third quarter, or $1.43 per diluted share, compared with $9.9 billion, or $0.94 per diluted share, in third quarter 2023. Operating cash flow increased 57% to $112.7 billion for the trailing twelve months, compared with $71.7 billion for the trailing twelve months ended September 30, 2023. Free cash flow increased to $47.7 billion for the trailing twelve months, compared with $21.4 billion for the trailing twelve months ended September 30, 2023.

Latest News and Facts

1. AWS Investments: Amazon Web Services plans to invest $11 billion in Georgia to expand infrastructure supporting AI and cloud technologies. 2. Prime Video: Prime Video will stream 27 NWSL games in 2025. 3. Renewable Energy: Amazon has met its 100% renewable energy goal seven years ahead of schedule. 4. Housing Equity Fund: Amazon added $1.4 billion to its Housing Equity Fund to create and preserve 14,000 affordable homes.

Investment Insight

When a company consistently generates strong and stable cash flows, its stock price forecast is typically very positive. However, if the equity risk premium is negative, it indicates that the stock is currently overvalued in the market. This suggests that it may not be the ideal time to invest in the stock.

Investment Insight. Amazon
Investment Insight

Amazon Stock Forecast**

MIN/MAX20252026202720282029
MIN211.19241.52276.19315.85361.20
MAX329.31376.59430.66492.49563.21
AMZN Price Forecast

When to buy and Investment Tips

It is evident that the market price is currently at an all-time high (ATH), making it the least favorable time to invest in the company’s shares. Even in the worst-case scenario, adding to an existing position is not an optimal solution. From a technical analysis standpoint, a short-term price correction is likely in the near future, potentially creating a more favorable opportunity to purchase the company’s shares.

Dividend Policy

Amazon does not pay dividends. Instead, the company focuses on reinvesting profits to fuel growth and innovation. This approach may be less appealing to income-focused investors but is attractive to those prioritizing long-term growth.

Conclusion

Amazon’s financial performance continues to impress with significant growth across all segments. However, with the stock currently at an all-time high, it may not be the best time to invest. A short-term price correction is likely, presenting a more favorable opportunity for investors. Understanding Amazon’s dividend policy and market dynamics can help you make informed decisions.

A cup of coffee from you for this excellent analysis.

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*Investment analysis involves scrutinizing over 50 different criteria to assess a company's ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.

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