Amazon : To buy or not to …
$Amazon.com(AMZN)$fourth-quarter earnings report surprised even the most bearish analysts. The company reported significant increases, mostly thanks to its cloud segment, AWS, and its Rivian stake.
The company's e-commerce segment also presented surprisingly good results.
Amazon is a massive company with great growth potential. It's stock price seems to be more sensitive to e-commerce growth than it is to any of its other segments. On top of ongoing supply-chain constraints and labor shortages, the war between Russia and Ukraine might make U.S. inflation even worse than predicted.
Is Amazon stock a buy now that it announced a giant 20-for-1 stock split, its first in more than two decades, along with a $10 billion buyback plan? It is currently trades near $3,326 would drop to about $166 a share when the split kicks in, due sometime in early June.
If you're bullish on Amazon, there's no reason to wait to buy shares. That is, of course, unless your personal financial situation makes it difficult to spend roughly $3,300 per share and your brokerage doesn't offer fractional shares. If that's the case, the upcoming stock split will provide the opportunity you've been waiting for.
While the stock split is a positive indicator for Amazon stock, buying at current levels might be a risky proposition. The insiders are selling more stocks than they buy. There can be a variety of reasons for this, but in general it can be considered as a negative signal.
Disclaimers: this is not investment advice
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.
Still bullish