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Unveiling the Forces Behind $AMZN's 81% Gain in 2023 Amazon (NASDAQ: NASDAQ:AMZN ) quietly emerged as one of the standout performers, recording an impressive 81% gain in its stock value. While the spotlight was often on other tech giants like Nvidia and the AI sector's newfound fascination, Amazon's remarkable turnaround marked one of its best years on record, adding approximately $700 billion in market value. I. Riding the Tech Stock Wave: Amazon's surge in 2023 was not isolated but part of a broader trend in the tech industry. The Nasdaq Composite soared 43%, and the Nasdaq 100 experienced a 54% jump, reflecting the overall bullish sentiment in the sector. The "Magnificent Seven," the seven most valuable tech stocks, witnessed substantial gains, positioning Amazon right in the middle of this impressive cohort. II. Strategic Moves and Profitability Surge: A pivotal factor contributing to Amazon's success in 2023 was CEO Andy Jassy's strategic approach to enhance profitability. The company underwent its most extensive layoff ever, shedding around 27,000 corporate employees, and divesting experimental ventures like the Scout home delivery robot and the Amazon Care healthcare service. Additionally, several Amazon Go stores employing the "Just Walk Out" technology were closed. These decisive actions, coupled with sustained growth in high-margin businesses like the third-party marketplace, advertising, and Amazon Web Services (AWS), led to a remarkable surge in operating margin. In the third quarter alone, operating income catapulted from $2.5 billion in the previous year to an impressive $11.2 billion. The cumulative operating income for the first three quarters of 2023 reached $23.7 billion, compared to $11.2 billion in 2022. III. Continued Focus on Profitability: Looking ahead to 2024, Amazon's focus on profitability remains a core strategy. Jassy's commitment to leveraging earlier investments, such as incorporating advertisements into Prime Video, signals a continued drive to boost the company's profit margins. While Amazon's current price-to-earnings ratio of 75 might seem steep by conventional metrics, the sustained potential for margin expansion justifies the valuation. IV. AI and Future Growth: Artificial Intelligence (AI) emerges as a pivotal growth opportunity for Amazon in 2024. The launch of the Bedrock AI hosting service and a strategic partnership with Anthropic AI, backed by a $4 billion investment, showcase Amazon's commitment to advancing in the AI landscape. Although a breakthrough in AI is not essential for continued success, it could undoubtedly amplify Amazon's growth trajectory. With competitive advantages in e-commerce and AWS, Amazon is well-positioned to thrive in the evolving tech landscape. Conclusion: While replicating an 81% jump in 2024 may be unlikely, Amazon's trajectory points to sustained growth. With a wide economic moat, the company has ample room to drive profits higher, supported by strategic moves, expanding margins, and an increasing focus on AI. Investors should keep a keen eye on Amazon in 2024, as the tech giant continues to navigate the ever-evolving landscape with resilience and innovation.
NASDAQ:AMZNLong
by DEXWireNews
Amazon Stock Pops More Than 5%The e-commerce giant's Q4 revenue guidance also beat Wall Street's expectation. Shares of Amazon (AMZN 7.49%) jumped 5.4% in Thursday's volatile after-hours trading session, following the e-commerce and cloud computing leader's release of its third-quarter 2023 report. The gain is attributable to the quarter's revenue and earnings both sprinting by Wall Street's estimates, with the bottom-line beat a particularly big one. Investors were also likely pleased that revenue guidance for the fourth quarter -- the particularly important holiday quarter -- exceeded the analyst expectation. 1. Revenue grew 13% Amazon's net quarterly sales grew 13% year over year to $143.1 billion, easily surpassing the $133.4 billion Wall Street had expected. That result also edged by the company's guidance range of $138 billion to $143 billion. Excluding the favorable effect from foreign-currency exchange, revenue increased 11% from the year-ago period. Year-over-year revenue growth at AWS continued to slow on a sequential-quarter basis. In the prior three quarters, the cloud computing unit's year-over-year revenue grew 12% (Q2 2023), 16% (Q1 2023), and 20% (Q4 2022). This slowdown is industrywide, as many businesses are being cautious with their spending due to the uncertain macro environment. On the earnings call, management expressed optimism that the surging adoption of artificial intelligence (AI) will be a big tailwind for its AWS business. That said, AWS's profitability increased significantly (as discussed in the next section) more than its revenue, and profitability growth, arguably, is more important than revenue growth. Moreover, Amazon's e-commerce business's revenue growth outperformed Wall Street's expectations, which more than compensated for AWS's revenue falling just a tad short of the Street's estimate ($23.06 billion vs $23.13 billion). This dynamic underscores the benefit of diversification. 2. Operating income soared 348% The quarter's operating income more than quadrupled from the year-ago period to $11.2 billion. This result walloped Amazon's guidance range for operating income between $5.5 billion and $8.5 billion. AWS's operating income growth was robust on both a year-over-year and a sequential basis. As noted in the chart, it jumped 30% year over year, and it also increased 30% from the prior quarter (Q2 2023). In the prior quarter, AWS's operating income edged down 5% year over year to $5.4 billion. 3. Earnings per share surged 236% In Q3, net income was $9.9 billion, or $0.94 per share, up 236% year over year. This result crushed the earnings per share (EPS) of $0.28 that Wall Street had expected. The quarter's net income includes a pre-tax valuation gain of $1.2 billion included in nonoperating expense from Amazon's common stock investment in electric vehicle maker Rivian Automotive, which went public in November 2021. The year-ago quarter's net income had included a pre-tax valuation gain of $1.1 billion from the Rivian stock. 4. Operating cash flow rose 81% for the trailing year Operating cash flow jumped 81% to $71.7 billion for the trailing-12-month period. Free cash flow (FCF) was $21.4 billion for this period, compared with negative $19.7 billion in the year-ago period. The company ended the quarter with cash and cash equivalents of $50.1 billion, and long-term debt of $61.1 billion. Investors should mainly focus on Amazon's operating cash flow, rather than its FCF. FCF can jump around a lot quarter to quarter based on how much money the company is investing in growth initiatives. 5. Revenue is expected to grow 7% to 12% in the fourth quarter For Q4, management guided for net sales in the range of $160 billion to $167 billion, which would amount to growth of 7% to 12% year over year. This guidance includes an expected favorable impact of 40 basis points (0.4 percentage points) from foreign exchange rates. Going into the Q3 report, Wall Street had been modeling for Q4 revenue of $157.2 billion, so Amazon's top-line guidance was higher than what analysts had been expecting. Amazon, which doesn't provide earnings guidance, also said that it expects Q4 operating income will be between $7.0 billion and $11.0 billion, compared with $2.7 billion in the prior-year period. A good overall quarter Amazon turned in a strong quarter, especially considering the uncertain macro environment. With its leading positions in two massive growth markets -- e-commerce and cloud computing -- Amazon still has a long runway for growth.
NASDAQ:AMZNLong
by DEXWireNews
Amazon (AMZN) -> Growing With E-CommerceMy name is Philip, I am a German swing-trader with 4+ years of trading experience and I only trade stocks , crypto , options and indices 🖥️ I only focus on the higher timeframes because this allows me to massively capitalize on the major market swings and cycles without getting caught up in the short term noise. This is how you build real long term wealth! In today's anaylsis I want to take a look at the bigger picture on Amazon. Looking back at January of 2023 you can see that Amazon stock perfectly retested and already rejected the support trendline of the rising channel and also a previous resistance level. With Amazon currently retesting resistance at the $141 level, I do expect a minor rejection but then I would love to see a break and retest and another push higher to retest the channel top. - - - - - - - - - - - - - - - - - - - - I know that this is a quite simple trading approach but over the past 4 years I've realized that simplicity and consistency are much more important than any trading strategy. Keep the long term vision🫡
NASDAQ:AMZNLong
by basictradingtv
37
Amazon -> Continuation TradeMy name is Philip, I am a German swing-trader with 4+ years of trading experience and I only focus on price action and market structure 🖥️ I am trading the higher timeframes because this allows me to massively capitalize on the major market swings and cycles without getting caught up in the short term noise. This is how you build real long term wealth! In today's anaylsis I want to take a look at the bigger picture on Amazon. After the recent rejection away from the lower support trendline of the rising channel I do now expect a short term correction back to the $105 level. Then we could see an inverted head and shoulders pattern which indicates more upside potential and eventually new all time highs. - - - - - - - - - - - - - - - - - - - - When the market moves where, and how, and if - these are all unknown. The only thing which you can control is your risk. - Philip Basic Trading - Keep the long term vision🫡
NASDAQ:AMZNLong
by basictradingtv
11
Amazon (AMZN) Breaking the RED line and 100$ wall was a big short signal and now we heading to another big support level which is 80$ Wall Street equities were in the red on Monday with Nasdaq leading declines as investors worried the Federal Reserve's monetary policy tightening campaign could push the U.S. economy into a recession. while Amazon workers will go on formal strike for the first time in the UK, The three major U.S. stock indexes were on track for the fourth straight day of declines since Wednesday, Fed Chair Jerome Powell took a more hawkish tone than expected when the central bank raised interest rates. Powell promised further increases even as weak data showed signs of a weakening economy. The S&P 500, the Dow Industrials and the Nasdaq have sold off sharply for December, on track their biggest annual declines since the 2008 financial crisis. Im not close my shorts till we back to 70$ level are you READY for 2023?
NASDAQ:AMZNShort
by moonypto
2
AMZN a long reversal tradeAMZN on the 30 minute chart has descended from a double top / head and shoulders pattern in early to mid July and is now set up in the lowest VWAP bands in oversold undervalued territory. The RSI shows lines bounced from the lowest green line set at 20. the low time frame blue- 5 minute line has crossed above the higher 60 minute black line time frame and they are both above the 50 level demonstrating bullish momentum in the early reversal. The mass index indicator crossed above the reversal zone and then down triggering the signal. I will take a long trade on AMZN seeking to profit from this reversal with about 8% near term upside. The trading plan's targets are in the text boxes on the chart.
NASDAQ:AMZNLong
by AwesomeAvani
1
SasanSeifi 💁‍♂️🔵AMZN 👉12H 118 / 121 / 123▪️ Hello everyone ✌ By examining the chart in the time frame of 12 hours, as you can see, the price has grown by about 12% after breaking the dynamic resistance and due to the completion of pullback from the range of 101, and after a slight fluctuation, it again faced a positive fluctuation. Currently, it is trading in the range of 114 midline of the ascending channel.📊 ‎📈The scenario we can consider is that if the support range of $110 and $108 is maintained, the price will continue to grow up to the range of $118 and the gap area of 121/123. ❗️ 🔸We have to see how the price will react to the resistance ranges. If it stabilizes above the range of 123, the possibility of more growth can be considered.‼️⚠️ ⚠️Keep in mind that it is important to maintain the 110/108 support range for the continuation of the positive trend. ▫️The current price : 114.07💲 ▫️TF : 12-H ❎ (DYOR)...⚠⚜ What do you think about this analysis? I will be glad to know your idea 🙂✌ IF you like my analysis please LIKE and comment 🙏✌
NASDAQ:AMZNLong
by SasanSeifi
Amazon -> Finally BullishHello Traders, welcome to this free and educational multi-timeframe technical analysis . On the weekly timeframe you can see that Amazon stock is currently breaking above a major previous weekly structure area exactly at the $105 level which is now turned support. You can also see that over the past months, Amazon has been creating a solid double bottom, weekly market structure and moving averages are also very bullish, so I am now just waiting for a retracement and then I do expect more continuation towards the upside. On the daily timeframe you can see that with today's candle, Amazon stock is perfectly breaking above a major previous daily resistance area at the $112 level which is now turned support so I am now just waiting for a retest and then I am looking to get long on Amazon. Thank you for watching and I will see you tomorrow! You can also check out my previous analysis of this asset:
NASDAQ:AMZNLong
by basictradingtv
56
LONG Term AMZN DCARe-entered the market after several months on the sideline waiting for longer term indicators to look positive. I believe this is a suitable spot to start DCA again into high conviction companies and stocks. High conviction in the company for the long term✅ Money flow on the monthly in the red ✅ RSI Oversold on the monthly ✅ Trading around significant support (@0.5 AT Fib)✅ Market Cipher on the monthly around the 'buy-zone' ❓* *Market Cipher not yet indicating buy, however, weekly green indicator with the above indicates the monthly buy-signal is near - hence comfortable to DCA as within my personal risk tolerances) ** NOT TRADING OR FINANCIAL ADVICE **
NASDAQ:AMZNLong
by Skook92
Amazon -> Bullish Scenario Playing OutHello Traders, welcome to this free and educational multi-timeframe technical analysis . From a weekly perspective Amazon recently tested a quite obvious previous weekly support area from which we started a quite nice rally towards the upside. Considering the fact that Amazon also broke above a key weekly downtrend-line, I think that we have some more overall upside potential. From a daily timeframe we are currently retesting previous resistance which is now turned strong support, so if we see some more bullish confirmation inside of this zone, there is a high chance that we will actually see the continuation towards the upside. Thank you for watching and I will see you tomorrow! You can also check out my previous analysis of this asset:
NASDAQ:AMZNLong
by basictradingtv
36
AMZN TRADE IDEAS 2/13-2/17AMZN consolidating on the primary trend line and the wedge of the secondary trend line. A break above the daily 100ma, at 99.75, I'll look to take it to 101.18, 103.63. Between the 200ma, 100ma, and 50ma, AMZN has rejected the primary trend line and broke below a key level at 103.63 and closed below both the 200 and 100ma. The next Moving Average support level down is the 50ma, sitting at 93. A break below 95.75 and I profit target 94, 92.75. A break below the daily 50ma and I will have the demand zone of 85 in sights!
NASDAQ:AMZNLong
0
by WSBB