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Technical view: Amazon (AMZN)

Technical view
 

AMZN is in stage #1. There is still a buy signal for this stock, but the trend stalled. At least we are not going down anymore, again, at least not now. But the weekly chart just flashed a strong buy signal. Let’s see if it holds. The trend may soon morph into stage #2.

 
Technical view weekly
 

AMZN’s revenue growth is impressive, and it is growing at an 8.58% annual growth rate. Its 10-year growth is 21.51%:

 
Technical view weekly
 

Amazon’s cash flow was a bit wacky and in 2021 it was even negative. But the reason for it was that the company was heavily investing in its infrastructure – building new distribution centers, new delivery ways, etc. These heavy investments in transportation and distribution centers will pay off in the future.

 
Technical view weekly
 

These expenditures had an impact on the company’s EPS which was negative last few quarters. But again, I think this is a temporary setback caused by investments.

 
Technical view weekly
 

Shares outstanding are quite high indicating dilution to shareholders. The company has been diluting constantly since 1999 but the rate of increase is fairly small. The 10-years dilution ratio is 1.16% only.

 
Technical view weekly
 

The company has enough cash on hand to eliminate all its debt:

 
Technical view weekly
 

The company is still overvalued in the short term, but it is trading below its 2025 fair value. Unless it changes, it is trading at a level where it is worth buying.

 
Technical view weekly
 

Technical view weekly
 

The stock is now AGGRESSIVE BUY
 

This post was published in our newsletter to our subscribers on Saturday, March 25th, 2023. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.
 





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