AMZN Stock Analysis History: Amazon was founded in 1994 by Jeff Bezos (current CEO) under the original name of Cadabra. Bezos left his position of Vice-President of D. E. Shaw & Co in order to create his new company. The company’s name was eventually changed to Amazon in 1995 as Amazon was much more marketable than Cadabra. Starting out as an online book retailer, Amazon found immediate success. In the first two months, Amazon was already selling in all 50 States as well as 45 different countries with revenue over $20,000 a week. Unfortunately, the “dot-com crash” of the early 21st century almost ruined the company, who was lucky to survive. Overnight, their stock decreased from over $100 to only $7. In 2000, Amazon changed their
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Their revenue is growing at about a 20% per year rate, which is unbelievable for a multibillion dollar company. With this in mind, why is the company only producing a tiny fraction of their revenue as a profit? The answer is that they are spending an even more astronomical amount of money on expansion and expenses. In fact, their equity is actually going down: -55.68% between 2014 and 2015.
Conclusion:
After analysing all of the information, I cannot recommend purchasing Amazon as a stock investment. While the company is expanding at an astronomical rate, the profits are simply not there. They are generating a tremendous amount of revenue, but at the cost of enormous expense. This has led to the company’s equity to go down tremendously, but the stock price is still going up.
I predict that, at this rate, in one year’s time the price of one share of Amazon will surpass $1000. While this might seem like great thing, this will not work out in the long term. The stock is currently overinflated with excitement in their insane revenue growth, but at this rate the company’s equity will soon turn negative. When that happens, I think that the investor confidence will fade, and the stock will crash. For that reason, I predict that in five years the price for one share of Amazon will be about
Their revenue is growing at about a 20% per year rate, which is unbelievable for a multibillion dollar company. With this in mind, why is the company only producing a tiny fraction of their revenue as a profit? The answer is that they are spending an even more astronomical amount of money on expansion and expenses. In fact, their equity is actually going down: -55.68% between 2014 and 2015.
Conclusion:
After analysing all of the information, I cannot recommend purchasing Amazon as a stock investment. While the company is expanding at an astronomical rate, the profits are simply not there. They are generating a tremendous amount of revenue, but at the cost of enormous expense. This has led to the company’s equity to go down tremendously, but the stock price is still going up.
I predict that, at this rate, in one year’s time the price of one share of Amazon will surpass $1000. While this might seem like great thing, this will not work out in the long term. The stock is currently overinflated with excitement in their insane revenue growth, but at this rate the company’s equity will soon turn negative. When that happens, I think that the investor confidence will fade, and the stock will crash. For that reason, I predict that in five years the price for one share of Amazon will be about