This report analyzes the performance of Amazon.com stock relative to their financial performance. The report focuses on the current state of the capital market, Amazon’s earnings trends, ratio analysis, and analyst recommendations. The report concludes with an investment recommendation based on the information obtained by the analysis.
All ratios were computed using financial information obtained from Amazon’s 10-K filings from 1999-2002. 2003 financial information was obtained from Amazon’s 10Q for the quarter ended September 30, 2003.
The United States economy is still experiencing a significant recession, which has weakened the capital markets. Over the past five years stock prices have experienced massive fluctuations. This is especially pertinent to technology stocks such as Amazon. The graph below illustrates Amazon’s stock performance over the past five years.
Amazon’s stock has fluctuated drastically since 1999. In light of the current economy, it is reasonable to assume that this stock will continue this trend, and begin declining soon.
The graph below shows Amazon’s net income since 1999:
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