Buy stock now from Amazon!
Over the past week eBay has recently announced its third-quarter results, which are quite favorable for investors as the stock climbed successfully the next day. This week, Amazon (AMZN), a cousin of a similar online auction giant, will report its earnings, trying to dive back to the era of Fai ory nearly five years ago. However, with the last five years Amazon stock fell, as investors, you may be hesitant to take such action to get more or any shares in this way. While such emotions are understandable, if you do not follow such reasoning, you will lose a great chance of earning considerable capital gains
Strictly looking at fundamentals, Amazon is really not in the past The peak of several years. Revenue growth in the past three years was favorable, but unfortunately, other factors, such as net profit, did not increase to many shareholders' preferences. While I believe that such statistics are not lying, there are more profound effects embedded in such numbers. Strictly considering the operating margin, Amazon's performance in the report year quite well, confirmed the company's actual business to bring positive growth, in my opinion, this may be the most important indicators to see the fundamentals. Amazon's problems are directly dependent on its financing and investment costs, both of which are scary in the recent past. While this is not advisable, it is important to understand that for much of the third quarter, Amazon is still a young company, both factors will rise sharply in the near future. While it may not be directly reflected in the quarter, if Amazon continues to report its pro forma operating margins, then economies of scale plus recession approaches, Amazon's revenue and profits are expected to rebound to its glorious days from now on oversold prices.
Looking at the last sentence, you may be wondering why Amazon's stock will rise in the recession. Rationality can be explained by simple economic theory. With the increasing demand for luxury goods, producers will eventually have to raise prices to meet this preference. In this case, coupled with the Federal Reserve interest rates rising, consumers are more reluctant to buy these luxury goods, resulting in excess cargo. When this happens, not only are consumers looking for cheaper prices, but many of the same buyers are being fired from their respective jobs, as producers have to cut costs to make up for the huge inventory already produced. Now you may ask yourself this is related to Amazon. As mentioned, consumers are looking for cheaper prices in the process, many buyers will turn to online companies such as Amazon or eBay to get discounts on specific products than they normally buy during the boom times.
In order to provide some evidence of such a theory, when you see the recession from 2001 to 2003, you will notice Amazon's stock rose from about 4 points to 60 points : The incredible increase of nearly 1400%. Now when the economic activities such as the boom since 2004, Amazon stock fell nearly 60% from 30 points, close to 30% now, as the Fed seems to have increased interest rates have been completed
] So although usually I would postpone the purchase of Amazon's shares for a few months, the most recent report eBay (19459001)]which is the most recent report on Amazon's stock, Positive note, I encourage the purchase of Amazon's shares because the two companies operate and get income in a similar way.Although there may be Amazon's results may be less favorable as I am writing this article for this third quarter report that I Very confident that at this time next year, Amazon's shares will be at least 45 points range if not high