Amazon (AMZN, Financial) shares declined by 4.16%, with the current trading price at $202.675. This decline coincided with a broader market dip influenced by recent comments from Federal Reserve Chair Jerome Powell, which dampened expectations for a potential interest rate cut in December 2024.
Amazon.com Inc (AMZN, Financial), listed on the NASDAQ, is currently trading at $202.675, reflecting a 4.16% decline. Despite this dip, Amazon maintains a significant market capitalization of $2.13 trillion. However, the stock carries a price-earnings (P/E) ratio of 43.4, which is considerably higher than the industry median. This indicates that the stock might be priced for future growth, but investors might be cautious due to its valuation.
In terms of financial health, Amazon exhibits strong financial strength with an Altman Z-score of 5.91, indicating a low risk of bankruptcy. Additionally, the company has a high Piotroski F-Score of 7, suggesting a healthy financial state. The Beneish M-Score of -2.82 implies that Amazon is unlikely to manipulate its financial statements.
Amazon’s price-to-book (PB) ratio stands at 8.22, which is above the industry median, reflecting a premium on its book value per share. The company’s EBITDA growth rate over one year is an impressive 50.4%, showcasing robust operational performance.
In terms of valuation, Amazon is modestly overvalued with a GF Value estimate of $161.92. For more detailed insights into Amazon’s GF Value, visit the GF Value page.
Investors should also note that Amazon has shown an insider selling trend with 17 transactions in the last three months, totaling over 16 million shares sold. This trend might warrant attention as it could imply a lack of confidence among some of Amazon’s insiders.
Despite the recent decline, Amazon has demonstrated impressive long-term growth metrics, including a 10-year price change of 28.56% and a year-to-date change of 33.39%. The company’s robust growth in the cloud computing and advertising sectors continues to be a significant contributor to its valuation. Nonetheless, potential investors should consider both the high valuation multiples and insider selling activities before making investment decisions.
