Apple’s Stock Has Held Up Better Than Those Of Its Large Technology Rivals This Year
Apple is still the king of tech and now by a staggering margin.
Apple Inc. shares have held up far better than those of its Big Tech peers over the past month, and thats helped the company to a staggering feat: The smartphone giant is now worth more than Alphabet Inc., Amazon.com Inc. and Meta Platforms Inc. combined.
were worth a combined $2.306 trillion.
The comparison was by financial YouTuber Joseph Carlson.
The contrast illustrates the sharp comedown in technology shares this year. Apple was worth $2.913 trillion to close out 2021, according to Dow Jones Market Data. The grouping of Alphabet, Amazon and Meta was worth $4.410 trillion at that time.
Apples stock has outperformed those of its three tech peers over both the past month and the course of 2022.
Apples stock has also had a better start to the week than any of those other three Big Tech names, though all four are down.
The four companies each reported earnings last week, and only Apples numbers were met with a positive stock reaction. Since then, Meta fell below a $300 billion valuation for the first time since February 2016. It was valued at $240 billion as of Wednesdays close.
Amazon Outlook And Projections: Growing Pains Of The Business
Having delivered strong revenue growth throughout the pandemic, the last 18 months finally caught up with it, according to Nicholas Hyett, equity analyst at Hargreaves Lansdown.
Andy Jassy, who took over as Amazons chief executive in July 2021, pointed out that investments had been made to satisfy customer needs, including almost doubling the size of its fulfilment network since the pandemic began.
Weve always said that when confronted with the choice between optimizing for short-term profits versus whats best for customers over the long term, we will choose the latter and you can see that during every phase of this pandemic, he said in the third-quarter results statement.
Jassy also warned this trend was likely to continue and pointed out that while itll be expensive for us in the short term, it was the right decision for customers and partners.
A Stronger Cost Structure
The company also has made progress on cutting costs across its fulfillment network — and says it’s working on a “stronger cost structure,” which should be a big plus over the long term. All of these efforts may buoy Amazon until the economic situation improves.
It’s also important to remember Amazon is a leader in two growth businesses. E-commerce and cloud computing services are forecast to grow in the double digits over the coming years. Amazon surely will benefit from this.
The company’s efforts to attract more and more Prime subscription-service members are working. Prime’s recent NFL Thursday Night Football premier sparked the three biggest hours of U.S. Prime sign-ups ever. And AWS continues to expand its infrastructure globally.
Now let’s look at Amazon’s share price. The stock is trading at less than 2 times sales. This is its lowest by that measure in about six years. At the same time, the company continues to grow its Prime subscription service and e-commerce revenue. And AWS remains a key strength. Historically, it’s driven Amazon’s total operating income.
As mentioned above, Amazon has what it takes to make it through today’s rough patches — and thrive in the long term. That’s why, at today’s level, Amazon shares look like a deal — and one that investors should consider buying on any dips.
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Megacap Technology Index Hit Lowest Level Since July 2020
Technology stocks continue to be hard hit by market volatility and the Federal Reserve’s aggressive rate hikes.
The NYSE FANG + Index shed 3.6% on Wednesday, hitting its lowest level since July 1,2020. It also notched its fifth negative day in six.
The index is comprised of a few key megacap technology companies, including the original FANG stocks, Meta, Apple, Amazon, Netflix and Alphabet. It also includes the next five largest and most highly-traded stocks and ADRs across the tech and consumer discretionary sectors – Alibaba, Baidu, NVIDIA, Tesla and Microsoft.
Carmen Reinicke, Gina Francolla
Amazon Stock History: Detailed Information
Jeff Bezos, the companys founder, opened the virtual doors of Amazons online store in July 1995, with the company going public just under two years later on 15 May 1997.
The initial public offering price was $18 or $1.50 when adjusted for the stock splits that occurred in 1998 and 1999. Amazon stock is traded on the Nasdaq. The companys fiscal year runs until 31 December.
In his most recent letter to shareholders, Bezos said the company had come a long way and now employed 1.3 million people around the world.
It also has more than 200 million Prime members, while more than 1.9 million small and medium-sized businesses sell via the site, making up almost 60% of its retail sales.
Customers have connected more than 100 million smart home devices to Alexa, he added.
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S& p 500 Dow Nasdaq Slip After Fed Dashes Hopes The End Of Rate Hikes Is Near
Stocks started the day lower on Wall Street and Treasury yields are again bumping up against multiyear highs a day after the Federal Reserve indicated that its fight against inflation is far from over.
The S& P 500 fell 0.7% as of 10:28 a.m. Eastern. The Dow Jones Industrial Average fell 134 points, or 0.4%, to 32,015 and the Nasdaq fell 0.8%.
Technology stocks were among the biggest weights on the market. Apple fell 2.8%.
The yield on the 10-year Treasury rose to 4.15% from 4.09% late Wednesday. Bond yields are hovering around multiyear highs as the Fed raises interest rates. That has prompted mortgage rates to more than double this year and it continues putting pressure on stocks.
Across the Atlantic, the Bank of England made its biggest interest rate increase in three decades. European markets were lower and Asian markets closed slightly lower.
This Business Could Be Generating An Estimated $11 Billion In Operating Profits
It turns out Amazon is mortal.
After years of breakneck growth, shares of the e-commerce stock plunged Friday after the company called for fourth-quarter revenue to grow just 2% to 8%, slower than the pace of inflation. Currency-exchange headwinds accounted for 460 basis points of the expected slowdown, but the forecast still shows the company struggling to grow in a difficult economic environment. It also shows that Amazon’s historical growth rate of 20% or more could be a thing of the past.
While it’s understandable why the stock fell 6.8% on Friday even as the Nasdaq soared nearly 3%, one number from Amazon’s report that was largely ignored shows why the stock still looks attractive.
Image source: Amazon.
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Is Amazon Stock A Good Investment
AMZN has performed really well over the years. Considering that it has moved from an IPO price of $18 to more than $3000 in 25 years or so, the stock is a top-performer. From what we have covered so far in this post, you can tell that the Amazon stock is expected to become even more valuable with time. The company is expanding into profitable new industries and the results have been impressive. In all, Amazon stock is a good investment that can become even better in the near future.
% Below Peak Amazon Stock Will Fall On Sputtering Growth
SEATTLE, WA – MAY 20: The exterior of The Spheres are seen at the Amazon.com Inc. headquarters on … May 20, 2021 in Seattle, Washington. Five women employees sued Amazon this week, alleging discrimination and retaliation.
After falling 46% from their high, I am surprised that shares of Amazon are so little sold short . Amazon is one of many leading high tech companies that are no longer enjoying the surge in demand that accompanied the peak months of the Covid-19 pandemic.
On October 27, Amazon reported results that came in lower than expected and it issued a disappointing forecast. Now Amazon investors are paying the price for its inability to reinvent itself.
Not all firms are responding to this challenge in the same way. Here are some examples:
- Apple AAPL is extending the life of a 15 year old product by tweaking its hardware and adding services
- Meta Platforms whose CEO and founder cannot be displaced by shareholders is suffering from a plunge in demand for its advertising space and betting the company on a cash-flow sapping service that I think is doomed to fail
- ServiceNow NOW is beating expectations because it has the good fortune of being a leader in an industry whose products are helping companies cope with rapid change
So I think investors could profit from betting that Amazon shares will keep falling.
(I have no financial interest in the securities mentioned.
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South Africa’s Takealot To Extend Reach In Towns And Townships
Takealot group, which includes South Africa’s biggest e-commerce retailer Takealot.com, is pushing further into townships and growing its new grocery partnership to defend its market share. Competition is expected to intensify following a report U.S. e-commerce giant Amazon will launch locally in the coming year. Amazon has declined to comment on the report.
Amazoncom To Invest Over 1 Billion Euros In European Electric Van Truck Fleet
Amazon.com Inc said on Monday it will invest more than 1 billion euros over the next five years in electric vans, trucks and low-emission package hubs across Europe, accelerating its drive to achieve net-zero carbon. The retailer said the investment was also aimed at spurring innovation across the transportation industry and encouraging more public charging infrastructure for electric vehicles . The U.S. online retailer said the investment would help its electric van fleet in Europe more than triple from 3,000 vehicles to more than 10,000 by 2025.
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What The Fed Did And Said
The Fed raised its benchmark fed funds rate by 0.75 percentage point on Wednesday, as expected. Stocks initially rallied on the news until Fed Chairman Jerome Powell said in his press conference that the Fed’s job in fighting inflation was far from over. He suggested the pace of rate hikes may slow in coming months but that the ultimate level that the fed funds rate may have to reach could be higher than previously thought, souring the mood on Wall Street.
In September, the Fed had a median projection for the fed funds rate to hit 4.4% this year and then peak at 4.6% in 2023 before heading lower. After Powell’s comments though late Wednesday, Wall Street is evenly split on whether the central bank ultimately raises rates to a range of 5% to 5.25% or 5.25% to 5.50% next year. After Wednesday’s move, the fed funds target range sits at 3.75%-4%, the highest level since 2008.
Will Amazon Stock Reach $100000
$100,000 per share is a tall order for a stock, even by Amazons standards. However, we cant rule out anything when it comes to how far big tech companies can go. Amazing is investing aggressively and has been a trailblazer in many difficult fields like Artificial Intelligence. The bigger it grows, the better the chances of its shares reaching $100,000. However, it may take several decades for this to happen.
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How Much Is Amazon Worth
Amazon is one of the most if not the most well-known names in the e-commerce industry. With its fast and convenient delivery, reliable customer service and perk-filled , its an e-commerce giant to be reckoned with despite its humble beginnings as an online bookstore.
Now with a huge competitive edge in its core services, constantly increasing market cap, positive investor sentiment and visionary leaders like CEO Andy Jassy and founder Jeff Bezos, its easy to understand why this company is one of the most valuable in the world.
Amazon: Company Snapshot
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Is Amazon Worth The Money
Despite some bumps due primarily to the post-pandemic economy, Amazon could be a solid long-term investment. Among 47 analysts weighing in on Nasdaq, the consensus rating is strong buy. The average price target for the next year is $142.29 in a range of $114.00 to $192. At a current share price of $92.12, the stock has very solid potential.
Amazon Stock Price Prediction For 2029
2029 is seven years from now. Of course, that is enough time for giant tech companies like Amazon to reach new heights in all ramifications. It is expected that the company would have grown much bigger by that time and the price of its stock must have grown significantly too. The mid-year projected price for AMZN is $6,579. It is expected to grow further and reach $6,717 by the end of the year.
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Amazon Operates The Most Popular Online Marketplace
Amazon has transitioned from an e-commerce pioneer to a retail powerhouse. In fact, Amazon is the second-largest retailer in the world, according to the National Retail Federation, and it operates the most popular online marketplace on the planet, receiving nearly twice as many monthly visits as the next closest competitor.
In 2022, eMarketer estimates Amazon will account for nearly 40% of online retail sales in the U.S., more than the next 14 companies combined. That success stems in part from its expansive logistics network. Amazon has invested in warehouses, planes, trucks, and electric vans, and those assets afford the company tight control over the shipping process. In turn, Amazon can provide fulfillment services to merchants, and it can delight buyers with fast and reliable deliveries.
Looking ahead, online retail sales worldwide are expected to increase at 10% annually to reach $7.4 trillion in 2025, while online retail sales in the U.S. are expected to grow faster than 12% annually to reach $1.5 trillion in 2025. That puts Amazon in front of a big addressable market, and the U.S. accounts for one-fifth of that opportunity.
Unit Labor Cost Increase Slows Trade Deficit Widens Jobless Claims Little Changed
The cost of labor rose less than expected in the third quarter and at the slowest pace since the beginning of 2021, the Bureau of Labor Statistics reported Thursday.
Unit labor costs, a measure of productivity against compensation, increased 3.5% for the quarter, below the 4% Dow Jones estimate and down from 8.9% in the second quarter. The BLS also reported that productivity rose 0.3% for the quarter, one-tenth of a percentage point below the estimate.
In other economic data releases, weekly jobless claims nudged lower to 217,000 for the week ended Oct. 29. That was also just below the 220,000 estimate.
Also, the trade deficit widened more than expected in September, rising to $73.3 billion, against the estimate for $72.3 billion.
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The History Of Amazons Stock Price By Markets Insider
In 1997 when Amazon first filed for its initial public offering, the company was just three years old and had no clear path to profitability. It faced a growing list of competitors that included Simon & Schuster and Barnes & Noble, each of which was already selling books online.
Amazon IPOd on May 15, 1997, trading on the NASDAQ under the symbol of AMZN at a price of $18 a share. On IPO day the stock price rose and closed at $23.50 putting the company at a value of $560 million. Taking the split-adjusted close of $1.96, the stock price has multiplied almost 500 times since.
When it comes to Amazons stock split history, the first stock split occurred on the 2nd of June 1998. This was a 2-1 split. Amazons next stock split was a 3-1 split on January 5th, 1999. There was one more stock split for Amazon stock that year, as 2-1 stock split on September 2nd.
On the 20th anniversary of the IPO Amazon stock closed at $961.35, giving the company a market value of about $466.2 billion. That’s 490 times its split-adjusted stock price.