Amazon Stock Analysis (October 2023)

I've started something new: https://www.3minutebreakdowns.com Should you buy Amazon stock? Ticker: AMZN Amazon has now produced 554 billion dollars in revenue over the last 12 months, 24 billion of operating income and 20 billion of net income. And that means the stock is valued at 2.4 times revenue or 67 times earnings. That sounds expensive but Amazon is still investing for the future. Earlier this year, the company moved from one single fulfillment network in the US to 8 separate regions. This allows faster shipping and in turn drives customer loyalty. CEO Andy Jassy said the move had gone much better than expected and its helping to drive growth in consumables and everyday items. So when you account for interest, taxes, depreciation and amortization Amazon’s earnings are up to 74 billion which represents an EV to EBITDA ratio of only 18. Of course, it isn’t all good news. The company faces a lawsuit from the FTC which could take years to play out. And AWS growth at 12% is disappointing when compared to the 31% growth of Microsoft Azure and 22% of Google Cloud. But, management said that AWS is picking up with the company closing more deal volume in September than for the whole of Q3. Meanwhile, this was Amazon’s second best ever quarter in terms of operating margin. #amznstock #investing #stockmarket