Amazon.com, Inc. (AMZN) is in the internet retail industry which belongs to the consumer discretionary sector. Amazon was founded by Jeff Bezos in 1994, is currently run by President & CEO, Andy Jassy, and is headquartered in Seattle, Washington and Arlington, Virginia, U.S.
My valuation metrics show that AMZN is overvalued and a SELL.
Amazon Company Overview
Amazon.com, Inc. is an American multinational technology company focusing on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. Initially an online marketplace for books, it has expanded into a multitude of product categories, a strategy that has earned it the moniker The Everything Store. It has multiple subsidiaries including Amazon Web Services (cloud computing), Zoox (autonomous vehicles), Kuiper Systems (satellite Internet), and Amazon Lab126 (computer hardware R&D). Its other subsidiaries include Ring, Twitch, IMDb, and Whole Foods Market. Its acquisition of Whole Foods in August 2017 for US$13.4 billion substantially increased its footprint as a physical retailer.
Amazon has earned a reputation as a disruptor of well-established industries through technological innovation and “aggressive” reinvestment of profits into capital expenditures. As of 2021, it is the world’s largest online retailer and marketplace, smart speaker provider, cloud computing service through AWS, live-streaming service through Twitch, and Internet company as measured by revenue and market share. In 2021, it surpassed Walmart as the world’s largest retailer outside of China, driven in large part by its paid subscription plan, Amazon Prime, which has over 200 million subscribers worldwide.
Amazon also distributes a variety of downloadable and streaming content through its Amazon Prime Video, Amazon Music, Twitch, and Audible units. It publishes books through its publishing arm, Amazon Publishing, film and television content through Amazon Studios, and has been the owner of film and television studio Metro-Goldwyn-Mayer since March 2022. It also produces consumer electronics—most notably, Kindle e-readers, Echo devices, Fire tablets, and Fire TVs.
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Amazon Stock Overview
| Price | $89.09 |
| 52 Week Range | $85.87 – $174.17 |
| Market Cap | $908 Billion |
| Earnings Date | Feb 01, 2023 – Feb 06, 2023 |
| Dividend Yield | N/A |
| Payout Ratio | N/A |
| Ex-Dividend Date | N/A |
AMZN vs. GOOG vs. TSLA vs. MSFT vs. BABA vs. META vs. WMT
In order to get an in-depth look at Amazon, we must see how this company compares to its competitors:
Amazon Stock Pros
- EV/EBITBA
Amazon Stock Cons
- Current Ratio
- REV % (Y/Y)
- Yield %
| Metric | AMZN | GOOG | TSLA | MSFT | BABA | META | WMT |
| Beta | 1.22 | 0.52 | |||||
| EV/EBITBA | 23.30 | 59.53 | |||||
| P/E | 93.01 | 32.36 | |||||
| Yield % | 0.00 | 0.00 | |||||
| P/B | 7.44 | 7.44 | |||||
| P/S | 2.05 | 2.05 | |||||
| C/S | 9.29 | 9.29 | |||||
| Current Ratio | 0.94 | 0.94 | |||||
| Margin % | 42.03 | 42.03 | |||||
| 1YR % | -44.45 | -57.17 | |||||
| ROIC % | 10.78 | 6.05 | |||||
| REV % (Y/Y) | 9.66 | 10.87 |
Amazon Stock Forecast
With data analyzed at the time of the report, I believe Amazon.com, Inc. (AMZN) is overvalued and consider this company a SELL.
Conclusion
When taking a close look at the current internet retailers, the company we believe with the most upside potential is JD.com, Inc. (JD).
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