Global Markets

Amazon (AMZN) Stock Price Outlook 2018: Bull Run to Continue?

Amazon (AMZN) Stock Price Outlook 2018: Bull Run to Continue?

Amazon Inc. (NASDAQ:AMZN) is in talks to strengthen its fin tech space and boost its customer offerings. The company is planning to expand its footprint with digital lending startup Capital Float.

The digital lending firm Capital Float is Bangalore based company which focuses on small business. They are ready to start consumer financing on Amazon’s platform. Though the deal size is not yet confirmed but according to sources, the size is not too big. It may invest $5-10million.

E-commerce giant is representing the new trend of shopping as more customers prefer to shop online instead of visiting shops or malls. Amazon offers wide range of variety to its customers.

Amazon has also focused on partnership with some popular brands of clothes and apparel like Nike Inc. (NYSE: NKE) and Calvin klein to attract more customers to their platform.

Amazon Stock Price Analysis

Amazon.com engages in retail sales of consumer products and operates through North America. Company has International presence in consumer retail segment and Amazon web services (AWS). Market cap of the company is $563billion, whereas Beta is 1.39.  Current trading price of the stock is 1,168.36 and 52-week high and low range is 1213.41-747.70. Stock is towards its upper range. P/E ratio of the company is 297.71. P/E does not support traditional DCF valuation method but investors must focus on the vision of the company.

Amazon is contributing by taking many steps towards its growth prospects and fin tech is recent one and Amazon prime offering is one of them. Another one is its focus on growing its private label brands. Company’s prime offering create a new way of convincing its prime customers to spend more. Customers choose to buy private label brands which show significant growth prospect for retailers in this segment.

Amazon (AMZN) Stock Price Outlook Positive for 2018 Amazon prime members

Analyst rating on Amazon

Analyst ratings is one of the important step for investors, everyone must have a look on analyst rating for the stock in which they intend to invest.

In case of Amazon, 50 analysts who are covering the stock, 47 gave buy rating, 0 sell rating and 3 hold rating. It means 94% analysts are positive on the stock.

Conclusion

Amazon is currently trading at rich valuation with high P/E. Analysts are positive on the stock and future prospect of the company is also bright, at the same time boosting its fin tech space is also a positive sign for the stock.

 

Disclaimer: The article is in no way an advice to buy or sell any stock; rather it provides a base for the investor’s own research. Consult with a registered investment advisor, prior to making any trading decision of any kind.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay updated with latest news on finance, taxation reforms, stocks, currencies, trading, global markets and many more.

Are you finding it difficult to manage your personal finance? Know your best opportunities of investments and savings with expert analysis and latest updates.

Copyright © 2016 Finance Minutes

You agree to not make actual stock trades based on comments on the site, nor on any techniques presented nor discussed in this site or any other form of information presentation. Finance Minutes will not be held liable for any losses you in occur while trading. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. All information is for educational and informational use only. You agree to consult with a registered investment advisor, prior to making any trading decision of any kind.

To Top