Grab AMAZON: Buy Now or Miss Out?
Statistically.
On Thu, 9 May 2024, $Amazon.com(AMZN)$ reached an all-time high.
The stock gained under 1.0% to close at $189.50 per share, its first record close since early April 2024.
Shares for Amazon have steadily climbed since the Seattle-based tech giant posted strong Q1 2024 earnings on 30 Apr 2024.
In fact, according to Dow Jones market data, AMZN shares have gained 6 out of the last 7 trading days.
Q1 2024 Earnings:
AMZN’s two metrics easily beat Analysts’ average estimates. (see below)
Earnings per share: $0.98 vs $0.83 cents expected by LSEG. YoY EPS gained +216%.
Revenue: $143.3 billion vs $142.5 billion expected by LSEG. YoY, sales were up +13%.
Equally important (if not more), the IT giant’s Amazon Web Services (AWS) business also reported better-than-expected revenue growth. (see below)
Amazon Web Services: $25 billion vs $24.5 billion in revenue, according to StreetAccount.
Advertising: $11.8 billion vs $11.7 billion in revenue, according to StreetAccount.
Global leading cloud infra service provider:
It is very important that AWS retains the top spot as leader of cloud infrastructure services provider.
Although its global share has slipped by -1.0% from 32% to 31%.
In the meantime, both $Microsoft(MSFT)$ Azure and $Alphabet(GOOG)$ Cloud have edged up to an all-time high of 25% and 11% respectively.
Stock Price Movement.
Amazon stock last had a record close on 11 Apr 2024.
Its share ended trading at $189.05 per share.
That milestone marked a full recovery from its's 2022 slump.
However, shares dipped lower after 11 Apr and fell as low as $166.32 (25 Apr 2024), as part of a broader tech pullback.
Amazon has since bounced back especially after its Q1 2024 earnings report.
Amazon’s gains since earnings report give the company a market capitalization just below $2 Trillion.
The two trillion threshold have only been crossed by a few. Example: Microsoft (MSFT), Alphabet (GOOGL), $Apple(AAPL)$ and $NVIDIA Corp(NVDA)$.
Technical Analysis & Ratings.
For now, AMZN stock price is in the pink of health:
Price index is above it’s moving average (ma) for 20-days, 50-days and 200-days.
It’s 50-day ma is above its 200-day ma.
Finally with a Relative Strength Index (RSI) of “62”, AMZN is neither oversold (30 & below) nor overbought (70 & above).
YTD, Amazon stock has gained +25% and +80% over the past 12 months.
Dividends in Pipeline?
Amazon remains a standout among mega-cap internet companies.
It remains as the “only” company that has yet to implement a quarterly dividend, even as cash and equivalents jumped to $73.9 billion YoY, from $54.3 billion a year earlier.
Unprecedentedly, all other mega cap IT companies have “switched” to dividends issue and saw their stock prices soared higher:
(1) Meta Platform.
Meta Platforms, formerly known as Facebook, announced its first ever dividend on 01 Feb 2024. (see above)
The company also unveiled a $50 billion share buyback program on the same day.
The dividend itself was set at $0.50 a share.
(2) Alphabet (Google).
On 25 Apr 2024, Alphabet announced its first-ever dividend.
It declared a dividend of $0.20 per share alongside a $70 billion stock buyback program.
This news came during Google’s Q1 2024 earnings report, that has beaten analyst expectations.
Will Amazon “succumb” to peer pressure and join the party and commence quarterly dividend issue?
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