Amazon.com Inc (AMZN)
Why Amazon Surged 11.5% in November
Shares of Amazon (AMZN 2.21%) rallied 11.5% in November, according to data from S&P Global Market Intelligence.
Amazon: Multiple Margin Levers Drive Earnings Growth
Pricing discounts to drive volume growth in Q3 FY24's discounts season have masked the benefits of lower freight costs. However, I expect this to improve gross margins in future quarters. AWS is enjoying strong operating leverage effects driven by prudent hiring practices, cost efficiencies and the combination of growth and high incremental EBIT margins. Amazon stock is attractively valued, and its run up is wholly due to EPS upgrades. This makes it an ideal GARP stock.
Amazon successfully tests using delivery drones in Italy
Amazon said on Thursday it had successfully completed an initial test of using delivery drones in Italy, the first European country where the e-commerce giant plans to introduce the service.
Amazon founder Jeff Bezos submits to old foes Trump and Musk
Amazon.com Inc (NASDAQ:AMZN) founder Jeff Bezos wants to bury the hatchet with two of his long-running foes Donald Trump and Elon Musk. In an interview with New York Times journalist Andrew Sorkin at the 2024 DealBook summit, Bezos said he is “very optimistic” about Trump's upcoming second term as US president.
I have $117,000 in Amazon stock after working there – should I diversify or let it ride?
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. I’m sure you’ve heard the many stories of the fortunes being made by people who’ve held onto company stock throughout their careers. Undoubtedly, a vast majority of the success stories of newly minted millions have been focused on options for early-stage firms and startups. At the same time, there are also stories of company stock holding that have gone up in smoke! When it comes to being issued common stock by a behemoth-sized employer like Amazon (NASDAQ:AMZN), you probably won’t land any sort of jaw-dropping gains. In the case of a Reddit poster holding $117,000 worth of AMZN shares, wondering if they should sell some to diversify their portfolio, I do think there are questions one needs to ask themselves before they take action (or lack thereof). Most notably, it’s whether they feel comfortable holding onto that many shares and if they’d be fine if AMZN stock were to take another massive tumble like the one suffered back in 2022. Key Points About This Article How much is too much of a single stock to keep holding onto? Amazon is a top-tier blue chip that may be worth holding, provided you’re not extremely overexposed to the one name. Also: Are You On Track to Retire? Take This Quiz and Find Out (Sponsored) The case for selling Amazon stock for the sake of diversification At this juncture, AMZN stock is a blue-chip behemoth in the tech world. And while shares are still very much capable of magnificent returns over a long-term timespan (Amazon is a member of the Magnificent Seven for a reason), I don’t think there’s any downside to selling a stake to improve upon one’s diversification. If the investor has any doubts about their ability to ride out the next recession or market downturn, diversifying one’s portfolio ought to be a main priority. While diversifying won’t remove all the market risk from a portfolio, it can help smoothen the bumps, especially if the next market sell-off is concentrated within a certain sector, industry, or theme. With all the worries about whether we’re not in an AI bubble, perhaps those who are concerned may wish to lighten their position in the high-momentum AI stocks. Amazon is a notable player in the AI game and one that could face huge downside risks should AI stocks be in for a collective tumble. If any worries about such a decline are there, I think selling stock for the sake of diversification is not a terrible idea in the slightest. Amazon is a solid $2.2 trillion titan now, and one that may or may not be able to power markedly higher if its AI innovations fall behind the pack. Though Amazon’s AI is intriguing, it definitely isn’t a top AI play. That title goes to OpenAI. Of course, there’s also a chance Amazon’s AI efforts could pay off more than its peers. And in such a case, perhaps holding AMZN stock could prove smart. Either way, one in a similar boat should ask a financial adviser their thoughts. I’d be willing to bet that diversification trumps single-stock concentration. Holding onto AMZN stock could be a winning bet, too. Of course, diversification is a hot topic of debate. Some folks, like Warren Buffett and Charlie Munger, may view diversification as overrated. “Diversification is protection against ignorance. It makes very little sense for anyone that knows what they’re doing.” Buffett once said. Indeed, Buffett is a man who practices what he preaches, as his Apple (NASDAQ:AAPL) position previously accounted for a massive double-digit percentage of the Berkshire Hathaway (NYSE:BRK-B) portfolio before his latest AAPL stock selling spree. Though the Apple position is still quite sizeable, I think it’s safe to say that he’s more than comfortable holding many, many shares of the firms he finds wonderful, provided the valuation still makes sense. At 44.5 times trailing price-to-earnings (P/E) and 33.4 times forward (P/E), I’d argue the valuation on AMZN stock isn’t all too excessive, especially considering the potential growth that could be ahead for e-commerce, the cloud, and AI. If Amazon can manage higher growth and better margins, perhaps the stock could be well on its way to a $3 trillion market cap. That said, if AMZN is worth more than 20% of one’s portfolio, diversifying could be the better move. You don’t need to be too heavy in a single name to benefit from a continued surge. The bottom line Amazon is a great company that has all the levers to continue higher. Despite that, shares could still be at risk of substantial downside if a tech correction were to hit next year. As such, if you believe you’re overexposed and underdiversified, don’t be afraid to sell and pick up some index ETFs. That way, your portfolio won’t get too damaged come the next AI- or tech-driven downturn. Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored) Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today. Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month. Click here now to get started. The post I have $117,000 in Amazon stock after working there – should I diversify or let it ride? appeared first on 24/7 Wall St..
Jeff Bezos says he's 'putting a lot of time' in at Amazon to help it become an AI winner
Jeff Bezos said he's "putting a lot of time" into Amazon despite stepping down as CEO in 2021. Bezos said Wednesday at the DealBook Summit that he's spending 95% of his time at Amazon on AI.
Hims & Hers Vs. Amazon: Why David Defeats Goliath
Hims & Hers has shown significant growth in the telehealth market, facing competition mainly from Amazon, but has unique advantages. HIMS's agility, focused resource allocation, and strong market fit give it an edge over Amazon's less dedicated telehealth efforts. Valuation suggests a target price of $37, with potential for a +15% upside, but caution is advised around the $40 mark.
If I Could Only Buy 1 "Magnificent Seven" Stock in December, This Would Be It
As 2024 draws to a close, many investors are probably wondering about the same things. Will there be a Santa Claus Rally this December, or will the markets sell off as investors prepare for tax loss harvesting?
Can the Rally in Amazon's Stock Continue with New Powerful AI Chip?
Hitting a new 52-week high of $220 a share on Wednesday, investors and technical traders may be amused by Amazon's (AMZN) AI initiatives.
Amazon rolls out Buy with AWS button to let software vendors more easily sell to its cloud customers
Amazon Web Services is introducing a Buy with AWS button that software companies can add to their websites. The button is designed to make it easier for buyers to make purchases of third-party cloud software using their AWS credentials.
Cyber Monday Ad Costs Jump 16% As Amazon Advertisers Chase Late Shoppers
Newly released data from e-commerce advertising platform Pacvue reveals intensifying competition among Amazon sellers during Cyber Monday, with advertising costs rising sharply as brands vied for last-minute holiday shoppers. Overall ad spending increased 23.3% year-over-year, while costs-per-click jumped 15.8% compared to 2023, reaching $2.12.
Jeff Bezos says he's optimistic about Trump, will help with reducing regulation
Amazon founder Jeff Bezos spoke optimistically of President-elect Donald Trump Wednesday at The New York Times' DealBook Summit, saying he expects a more friendly regulatory environment. In this article AMZN
