Amazon.com's Financial Report: What You Need to Know
By Terry Bingman, Financial Analyst
Introduction
Have you ever bought something from Amazon.com, like a book or maybe groceries? Well, Amazon is not just a place to shop. It's a huge company with a lot of different businesses. Let's break down some important information about Amazon’s financial health in simple words.
Company Overview
Amazon.com Inc. (AMZN:NASDAQ) is a big company based in Seattle, Washington. It started in 1994, selling books online. Now, it sells almost everything and is involved in cloud computing, digital streaming, and even artificial intelligence.
Some Key Information:
- Current Price (of one share of Amazon stock): $189.08
- Market Cap: $1.967 trillion (how much all the shares together are worth)
- Number of Employees: 1,521,000
- CEO: Andy Jassy
What’s Pee Ratio? (PE Ratio)
The PE Ratio is like a way to judge if a stock is expensive or cheap based on its earnings. Amazon's PE Ratio is 53.11. If you don’t know what this is, imagine you are buying a cake based on how much money it can make if you sell slices. A lower PE price is better if you can make more money off the cake.
How Has Amazon's Stock Price Changed?
In the last six months, Amazon’s stock price has gone up from about $153 to almost $189! This means if you had invested in Amazon six months ago, the value of your shares would have increased.
Price Movements:
- December 2023: $153.42
- June 2024: $189.08
Something special happened on February 1, 2024: Amazon’s stock price went up by 6% because they made a lot of money in the last quarter of the year ($170 billion!).
Amazon's Financial Health
Balance Sheet
A balance sheet is like a snapshot of a company’s financial health. Here are some key points:
- Total Assets: $530.97 billion (everything Amazon owns)
- Total Liabilities: $314.31 billion (everything Amazon owes)
- Total Equity: $216.66 billion (the value left after paying all liabilities)
Income Statement
An income statement shows how much money a company is making and spending:
- Revenue: $143.31 billion (total money made)
- Net Income: $10.43 billion (profit after expenses)
- Earnings Per Share (EPS): $0.98 (how much money each share makes)
If you’re still curious, think of this like a bakery. Revenue is all the money from selling cakes, and Net Income is what's left after paying for flour, sugar, and workers.
Cash Flow Statement
A cash flow statement shows how cash moves in and out of a company:
- Cash from Operations: $18.99 billion (money made from Amazon’s basic business)
- Free Cash Flow: $5.58 billion (cash left after all major expenses)
Future Stock Price Predictions
Short-Term Prediction (Next Quarter)
Projected Price Range: $200 – $210
Long-Term Prediction (Next 12 Months)
Projected Price Range: $220 – $240
Factors making Amazon stronger:
- Amazon Web Services (AWS): A profitable part of Amazon’s business.
- Advertising: Another growing money maker for Amazon.
Conclusion: Amazon is strong financially and is likely to keep growing. It's like a bakery that's not only selling more cakes but also opening new branches and diversifying into other sweets and snacks.
Disclaimer: These predictions are based on current information and can change due to various reasons like market changes.
Prepared by:
Terry Bingman
Financial Analyst
Sources:
- Amazon.com Inc. Financial Statements
- Market Data (Historic and Current Stock Prices)
- Industry Reports and Market Analysis
