Buy Amazon, regardless US market Rise or Fall?
On Fri, 6 Oct 2023 - US market ended October's first trading week higher, thanks to US’s September NonFarm Payroll (NFP) report coming in much stronger than Wall Street estimates (see below).
The euphoria enabled US market to surge at the closing bell, as investors digested the strong jobs report that blew away expectations.
US Market Friday’s Closings:
$DJIA(.DJI)$ : +0.87% (+288.01 to 33,407.58).
$S&P 500(.SPX)$ : +1.18% (+50.31 to 4,308.50).
$NASDAQ(.IXIC)$ : +1.60 (+211.51 to 13,431.34).
Although US investors rejoiced at the September jobs numbers, it has further complicated the central bank’s next move (on interest hike).
“Immediately” the CME FedWatch tool’s probability on a possible 25 basis points upwards hike in November 2023, rose to 21.1% versus its September’s 18.0% probability.
Will the probability continue to rise in the coming days and weeks?
The upwards momentum to the US market, unfortunately, will not persists into this week.
All because of an uprising in Israel over the weekend that has intensified with at least 1,000 civilians dead (see above).
The escalating conflict between Israel and Hamas has caused jitters in the US stock market due to fear of global instability.
US stock market is one of the largest in the world, and any significant event that affects global stability can have a ripple effect on it.
The conflict has resulted oil stocks, forecasted to open higher when trading resumes on Mon, 09 Oct 2023.
Rising oil prices, would have a significant impact on the US economy, unfortunately.
Last but not least, US strong relationship with Israel, implies that any conflict involving Israel can have political implications for the US.
Looking forward
Amidst the current gloom and doom (Russia/Ukraine war, Hamas/Israel conflict, UAW 24th day strike etc..) is there nothing that retail investors like us could look forward to?
For myself, I will be keeping a closed watch on $Amazon.com(AMZN)$ this week.
With all the recent bad press (see below), a buying opportunity has emerged?
UK’s Competition and Markets Authority (CMA) has launched an investigation into the cloud computing services provided by Amazon & Microsoft.
Their aim is to determine whether the 2 companies have broken antitrust laws.
CMA is concerned that Amazon and Microsoft may have used their dominant positions in the cloud computing market to unfairly restrict competition and disadvantage smaller rivals .
Investigation will examine whether the companies have engaged in anti-competitive practices, such as making it difficult for customers to switch to other providers or imposing unfair terms on customers.
This is what happens when governing bodies are not business oriented.
Which established company would “risk” a company’s reputation to host its apps with a small Cloud computing services Host, that may not be tried & tested ?
What about the smaller cloud computing host’s redundancy, fallback capabilities?
This is why I am not particularly concerned about this post.
What I am keen about Amazon is not because of Amazon’s:
Online portal.
Amazon Web Service (AWS) - cloud computing services.
The above are already established line of businesses, that have lives of its own.
What I am interested in is Amazon’s up and coming healthcare venture.
Like a lot of countries in the world, US is an ageing country.
Other countries that are greying fast includes: China, Japan and Singapore.
The number of Americans ages 65 and older will more than double over the next 40 years, reaching 80 million in 2040.
The number of adults ages 85 and older — group needing most help with basic personal care, will nearly quadruple between 2000 & 2040.
Improvements in life expectancy have also propelled the increase in the older population.
Between 1900 and 1960, life expectancy at birth increased from 51 years to 74 years for men and from 58 years to 80 years for women, primarily through reductions in infant, childhood, and early adult mortality.
Longevity gains since 1960, fueled by declining death rates at older ages, have been slower, especially for women.
Life expectancy's future course is uncertain but could grow dramatically with improvement in awareness in personal health and medical science.
It is Amazon’s vision and sustainable business proposition that I have taken a liking.
Its branching into healthcare did not happen by coincidence.
In fact, Amazon's foray into healthcare started in 2018 when it acquired PillPack, an online pharmacy, for $750 million.
Since then, the e-commerce giant has expanded its healthcare offerings to include:
Amazon Care — a hybrid virtual and in-person care service.
Amazon Clinic — an online platform for treating common conditions.
One Medical — a primary health-care provider that it bought for $3.9 billion in 2022.
According to Forbes, Amazon's revenue from healthcare-related products and services reached $25 Billion in 2023, up from $19 Billion in 2022.
Amazon Clinic has a customer satisfaction rating of 4.9 out of 5, and Amazon Care has seen growing demand from organizations across the country.
Amazon's plan for growing its investment in healthcare is to continue innovating and disrupting the industry with new products and services that leverage its technology, data, and customer-centric approach.
The company is also partnering with other healthcare players, such as insurers, providers, and governments, to create value and improve outcomes.
On 06 Jun 2022, Amazon undergone a
20-for-1 split.
Its closing price, prior to the split was $2,447.
Resulting its post-split price to be $122 per share.
Amazon closed @ $124.79 on the first Monday post split.
With last Fri, 06 Oct 2023 closing price at $127.96, is this an opportunity not to be missed?
Do you think US market will dip further today?
Do you think Amazon is worth a 2nd look now?
Please give a “LIKe”, “Share” and “Re-post” ok. Thanks. Rating is very important (to me).
Do consider “Follow me” and get firsthand read of my daily new post/s ok. Thanks.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Amazon will make 12-13 billion dollars the next 2 days from it's big sale.
Big boys bought the whole dip and turned it green. This will probably pop 4-6% this week. And earnings are coming and expected to show massive growth. So many revenue streams are just getting started here.
Would you consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!
Lots of positive business ideas are being formed in Amazon. it's still in active growth state across many sectors. undervalued and will be over 200 soon.
Thoughts on why google, Msft & meta seem to be doing fairly well but AMZN has been kinda sinking ? Any thoughts?
AMZN getting ready to soar!! 🦅
Strong project