Amazon shares are one of the most popular and profitable assets among traders. The popular company's shares exceed the capitalization of $ 1 trillion, this mark has long been passed, and the company is developing further, approaching new target heights. In this regard, as well as due to the current collapse of American indices, it seems interesting to assess the potential of this company's securities, as well as to analyze in more detail how to buy shares "Amazon».
Methodology of working with stocks "Amazon»
Amazon is history of success one person, Jeff Bezos.
In order to reasonably describe the possible strategies when working with papers "Amazon Inc. ”, It is required to conduct both a fundamental analysis of this company and a technical analysis of the movement of its shares.
Any user registered on the site can buy Amazon shares Robot for the exchange.
Fundamental Analysis: Economic Factors
«Amazon"Is a global platform that provides the opportunity to use their resources to organize independent private online stores on it. IN USA "Amazon"Occupies a position close to monopoly (and the dangers of this state will be given further attention), but now it is necessary to understand how the monopoly can develop in general ... on the Internet. After all, there are such international trading platforms as “Ebay","Alibaba", In the end, every country has its own"Avito».
The fact is that "Alibaba"Essentially represents only one virtual trading counter: rent and trade. No delivery guarantees, no quality control. (Of course, there is a support service, but if the seller does not want to send the goods to the buyer, the latter will at least spend several months clarifying the situation and “knocking out” his own money). "Amazon"Is a full logistic system: sellers, organizing a virtual store in the space "Amazon»Organizes not only its own account, but also rents a real storage space in one of the giant logistic complexes. As a result, only "Amazon»Can guarantee customers:
- fact of delivery;
- adherence to delivery dates.
Of course, this infrastructure is much more expensive than “a place behind a virtual counter”, which means that everything that is sold on this trading platform will have a higher cost. However, if we evaluate the growth in turnover "Amazon Inc. ”, For example, since 2009, it becomes obvious how much people in the world (and mainly Americans) value precisely the reliability of supplies, which only“ is ready to guarantee them ”Amazon».
But really, "Amazon Inc. ” has no approximate analogue in the world!
Fig. Revenue (turnover) "Amazon Inc. ” since 2009 (million dollars)
Fundamental Analysis: Financial Performance
However, analysts are not the only ones alive when making forecasts on the further dynamics of the shares of any issuer. We will analyze these fundamental indicators sequentially:
1. The indicator of operating profit (or margin).
The revenue of the virtual trading platform is really impressive (if only our Gazprom could earn so much), but we must remember that “Amazon"In fact - this is just an intermediary. Yes, it provides very valuable services, without which the online trading procedure would be much less secure, but in the total cost of any product, the price of services "Amazon"Extremely insignificant. We estimate it as a percentage of turnover (that is, of revenue).
Fig. Operational MarginAmazon Inc. ” since 2009 (%%)
It should be noted that this indicator generally went to zero or lower at one time. The fact is that the management of the company pursues an aggressive policy in the field of development of its enterprise. Go on continuously diversification processes, for example:
- cloud services are developing;
- service appearedAmazon Music", Designed to listen to music online (and download);
- option "Amazon Fresh»- fast food delivery service;
- service "Premium Video»Is intended for downloading and / or watching TV shows and movies online.
The company seeks to take as much of its market share as possible, therefore, it conducts a very neat policy with its own margin. In addition, it was precisely in 2014 that the boom "AliExpress"Who was able to draw a significant share of consumer interest from the owner"Amazon"- Jeff Bezos.
2. Cash flow per 1 share.
Fig. Earnings per shareAmazon Inc. ” since 2009 (in US dollars)
Comparing the graphs of operating margin and earnings per share, you can see almost complete coincidence of the ups and downs of these two indicators. Currently ManagementAmazon»Empirically forms the most effective policy in the field of establishing an indicator of own margin in various situations and at different intensity of consumer demand.
It would be wrong to say that "Amazon Inc. ” - this is super profitable corporation (even taking into account the fact that in the same year 2018, earnings per share increased 3 times to $ 20,14 per share). However, if you evaluate its profit in absolute terms, it will become clear how balanced the financial policy of the company is.
Fig. Operating cash flowAmazon Inc. ” since 2009 (million dollars)
CONCLUSION: Fundamentally, the company is growing, taking care of its own liquidity and diversifying their investments in all related industries. At the start of almost 10 years, one can observe the permanent growth of both the revenue and profit indicators. In this regard, these indicators simply cannot but affect the systematic growth of stock quotes of the issuer in question.
In the light of the conclusions on the fundamental part of the analysis, it seems interesting to carry out a technical analysis of stocks "Amazon».
Fig. Trend shares "Amazon Inc. ” in the first half of 2018.
Fig. Trend shares "Amazon Inc. ” in the second half of 2018.
It is obvious that the market duly won back the company's profitability growth (in terms of one share) for more than half of the year (in September 2018, the maximum values for the year were reached). And then global crisis trends made themselves felt and the stock market collapsed, dragging along the entire high-tech sector.
In 2019, a similar situation is observed: shares “Amazon»In the first half of the year, they briskly grow to the same values (this time until July), and then fall just as pessimistically by the end of the year (albeit to higher levels than at the end of 2018).
Fig. Trend shares "Amazon Inc. ” in the first half of 2019.
At the end of January 2020 (up to January 29), those who bought shares "Amazon", Very lucky. The fact is that on January 30, the rate showed almost 8% -ny gap up. And to those who bought stock call optionsAmazon"I had the opportunity to earn almost 50% of my capital. This encouraging growth continued right up to the 20th of February, when financial markets began to influence coronavirus. On February 19, a historic maximum was recorded - $ 2185 per share, and after that an uncontrolled decline began, which continues now. As of March 1, 13.03.2020, the closing price was $ 1786,31.
Fig. Trend shares "Amazon Inc. ” at the beginning of 2020.
What conclusion can be made? It is very simple and obvious: the growth of securities is due to the improvement of fundamental indicators of business development "Amazon Inc. ". But all cases of decline - this is purely the impact of the external environment.
How and where to buy shares "Amazon»To an individual
Buy shares "Amazon»Investors can only on the American organized platform of high-tech issuers NASDAQ. These securities may also be available to Russian investors if they work through those brokerage companies that have NASDAQ appropriate accreditation.
One of such brokers is the company "Abi". Open your subaccount this broker and the whole financial world will open before you.
How much can you earn on stocks "Amazon»
24option provides its customers with the opportunity to work with derivatives (that is, the ability to acquire and sell not only the shares themselves, but also futures on them). For an investor, this means having the opportunity to work with leverage (1: 6). In doing so, using futures You can earn, including, on a fall in the price of securities (and earn with leverage, for example, if you sell them on time).
EXAMPLE: The fall in the value of sharesAmazon Inc. ” started on 19.02.2020/2180/1786 from a level of approximately $ XNUMX, the current price is $ XNUMX. So the difference on spot-Market is $ 394 per share (but it can only be losses). But on futures can earn. And if you sell them for $ 2180, now you could have marginal account ($ 394 * 6) = $ 2364 per share! Please, a clear answer to the question of how much you can earn on stocks “Amazon».
Factors affecting the value of sharesAmazon»
Separately, talking about the influence of general market factors is, perhaps, pointless - everything is already obvious. As mentioned above, the value of the company "Amazon»Entirely the merit of his managers, who are working hard to stimulate revenue and optimize profit margins. Hence conclusion 1:
On the value of sharesAmazon"Influence the growth of user activity of users of this trading platform (and even this growth is quite professionally" fueled "by the managers of the company).
«Amazon"Virtually no competitors in the US market. And this greatly worries the president Trump. Moreover, he is seriously considering the introduction of antitrust laws against the corporation in order to remove the threat of monopolization from the US electronic retail market. Hence conclusion 2:
«Amazon"Is a political player and in order not to lose with his shares, you need to carefully monitor the news on this topic.
«Amazon"- an excellent, promising tool for investment. However, in order to earn solid money on his shares, you should carefully monitor the news digest and have sufficient experience to work with Futures... The company "24option" will help to buy shares of "Amazon» even to an individual, however, this is not at all the kind of investment that you can forget about and only come regularly for dividends - you need to be able to competently work with this valuable asset.