Amazon's stock is currently trading at $95.06 a share. Key resistance sits at $103.79 with major support at $88.92.
Overview
Amazon Inc. is a global American technology firm with an emphasis on cloud computing, online advertising, digital streaming, and artificial intelligence. It is one of the most valuable brands in the world and has been named as one of the most economic and cultural forces in the world. Along with Alphabet, Apple, Microsoft, and Meta, it is one of the Big Five American tech firms. It is a constituent of the NASDAQ 100, and its headquarters is based in Seattle, Washington.
Financials
Looking at the financial year ending on the 31st of December 2021 versus 2020, revenue rose by $83.7bn and gross profit rose by $44.7bn. In 2021 net income totalled $33.36bn versus $21.33bn in 2020, and EBITDA and EPS also saw a jump. EBITDA jumped by $11.3bn and EPS jumped to $3.24 from $2.09 in the prior year. Furthermore, total liabilities rose by $54.51bn, however, total assets rose by $99.35bn which offsets the rise in business liabilities. The cash-on-hand value also increased to $96.5bn from $84.4bn YoY. As a result, shareholder equity went up to $138.5bn in 2021 versus $93.40bn in 2020.
Technicals
From a technical overview, Amazon's share price is currently trading at $95.06 a share. Support sits at $92.49 then at $90.59 then at $88.92. A break below the $88.92 price level could see its share price slide towards the key support sitting at $85.87, which corresponds with the lower green trendline. Towards the upside, the stock faces resistance at $96.43 then at $97.74 then at $99.65. A break above these resistance levels may see the stock climb towards the major resistance at $103.79 (red oval). Looking at the technical indicators, MACD is currently positive but RSI is slightly negative as it reads 42.
Summary
On the basis of the financials of the company, it is a very profitable and healthy business. Amazon shows significant improvements year-on-year, and it seems likely to continue this way into the future. Total assets provide strong security as they outweigh liabilities, and its cash-on-hand stockpile keeps on rising while generating a significant profit YoY. Based on the technicals, Amazon’s stock is down 44% for the year, partly because of the weaker-than-expected quarterly earnings due to setbacks from the current economic crisis. However, this minor setback over the next couple of years could level itself out as the business does not look like it will be slowing down anytime soon. At this moment in time, the technical indicators are not demonstrating a clear direction for the stock, indicating a neutral position. Although, in the long term the stock should recover some of the losses from recent falls.
