1 Metric Indicates Amazon Stock Is a Sleeping Giant

Motley Fool2023-02-11

Amazon (AMZN -0.64%) has been one of the best stocks over the past decade, turning every $10,000 invested into nearly $80,000. And before the stock's decline in 2022, that investment was worth nearly ...

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吉慶
2023-02-11
吉慶
Hardwork will paid off. We should be patient.

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And before the stock's decline in 2022, that investment was worth nearly ...</p>\n\n<a href=\"https://www.fool.com/investing/2023/02/11/1-metric-indicates-amazon-stock-is-sleeping-giant/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0354030438.USD","symbol_name":"富国美国大盘成长基金Cl A Acc","start_time":0,"source_url":"https://www.fool.com/investing/2023/02/11/1-metric-indicates-amazon-stock-is-sleeping-giant/","article_id":"2310986548","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F719379%2Fperson-getting-a-package-in-the-mail.jpg&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2310986548","pubTimestamp":1676068200,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Amazon's free-cash-flow burn has dramatically decreased over the past six months.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","IE00BJTD4N35.SGD":"Neuberger Berman US Long Short Equity A1  Acc SGD-H","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","BK4581":"高盛持仓","LU0708995401.HKD":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","BK4548":"巴美列捷福持仓","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU0109391861.USD":"富兰克林美国机遇基金A Acc","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","LU0079474960.USD":"联博美国增长基金A","LU0082616367.USD":"摩根大通美国科技A（dist）","BK4532":"文艺复兴科技持仓","BK4554":"元宇宙及AR概念","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","LU0061474960.USD":"天利环球焦点基金AU Acc","LU0149725797.USD":"汇丰美国股市经济规模基金","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","BK4507":"流媒体概念","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0109392836.USD":"富兰克林科技股A","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","BK4566":"资本集团","AMZN":"亚马逊","BK4535":"淡马锡持仓","BK4538":"云计算","BK4559":"巴菲特持仓","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","BK4579":"人工智能","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU0238689110.USD":"贝莱德环球动力股票基金","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4122":"互联网与直销零售","BK4551":"寇图资本持仓"},"translate_title":"1个指标表明亚马逊股票是一个沉睡的巨人","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMZN":1},"content_text":"Amazon (AMZN -0.64%) has been one of the best stocks over the past decade, turning every $10,000 invested into nearly $80,000. And before the stock's decline in 2022, that investment was worth nearly $150,000.So what happened? Well, investors got worried about Amazon's over-expansion and its transition from a cash-generating company back to one that incinerates it. This is a valid concern, but one metric indicates that Amazon's stock could be a sleeping giant, just waiting to explode higher.E-commerce boosted Amazon in 2021 and hurt it in 2022Amazon, the world's largest e-commerce company, enjoyed a massive business boost during the pandemic when consumers looked online to get their everyday goods instead of venturing out to a store. To deliver, Amazon stood up multiple warehouses and significantly expanded its personnel to handle the load.However, the good times didn't last, and once restrictions eased, many consumers resumed their old habits. According to another e-commerce leader, Shopify, e-commerce adoption reverted to its average trendline in 2022.Image source: Shopify.Still, the long-term trend is a bullish one for e-commerce adoption, and Amazon's growth is starting to reflect that, at least domestically. In the fourth quarter, Amazon's net sales (from the North American commerce business) were up 13% to $93.4 billion. Digging in a bit deeper, Amazon's online stores (the products Amazon itself sells) were down 2% year over year, while its third-party seller services were up 20%. As Amazon continues experiencing this growth, the investments in its warehouse infrastructure will pay off. This should lead the all-important metric -- free cash flow -- to continue trending in the right direction.Amazon's free cash flow has significantly improved, but it has a ways to goThe one metric that is likely to turn Amazon's stock around is free cash flow, or how much cash a company generates through its normal operations, less investments in property, technology, and equipment. This metric reached a historic low in the second quarter of 2022, but it has steadily improved since then.QuarterTTM Free Cash FlowQOQ RiseQ2 2022($23.5 billion)N/AQ3 2022($19.7 billion)36%Q4 2022($11.6 billion)46%Data source: Amazon. TTM = trailing 12 months. QOQ = quarter on quarter. Although trailing free cash flow was still negative in the fourth quarter, management has done a phenomenal job steering the ship in the right direction. Cost-cutting efforts (including layoffs) have worked well for Amazon, but investors will want to see continuous improvement throughout 2023.If that trend plays out, the stock has tremendous upside.Trading at below 2 times sales, Amazon is valued at the lower end of its price-to-sales range over the past 20 years.Data by YCharts.This valuation doesn't make a lot of sense, especially considering a high-growth, high-margin business like Amazon Web Services (its cloud-computing segment) didn't make up 16% of Amazon's top-line in 2014, the last time the stock traded this low. If Amazon can get its cash flow on track, the stock has a lot of room to run. Management has been taking steps in the right direction, and it can still be one of the top big-tech stocks of 2023.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9954162888,"gmtCreate":1676115737444,"gmtModify":1676115741322,"author":{"id":"4115816057337392","authorId":"4115816057337392","name":"吉慶","avatar":"https://community-static.tradeup.com/news/738daceb8088f8f40462fe504a021532","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":3,"crmLevelSwitch":0,"idStr":"4115816057337392","authorIdStr":"4115816057337392"},"htmlText":"Hardwork will paid off. We should be patient.&nbsp;","listText":"Hardwork will paid off. We should be patient.&nbsp;","text":"Hardwork will paid off. We should be patient.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9954162888","repostId":2310986548,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":1,"commentSize":1,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2310986548"}