Is Now Time to Consider Buying Amazon.com, Inc. (NASDAQ: AMZN)?

Let’s talk about the popular company Amazon.com, Inc. (NASDAQ:AMZN). The company’s shares received a lot of attention due to a significant price increase on the NASDAQGS in recent months. After the recent increase in the share price, the company is now trading at its highest level for the year. Since it’s a large-cap stock with high analyst coverage, you can assume that any recent changes in the company’s outlook are already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Amazon.com’s prospects and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Amazon.com

What is Amazon.com worth?

Good news, investors! Amazon.com is currently still a bargain. According to our valuation, the stock’s intrinsic value is $316.45, which is higher than what the market currently values ​​the company. This indicates a potential opportunity to buy cheaply. However, since Amazon.com stock is quite volatile (i.e. its price movements are larger compared to the rest of the market), this could mean that the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator of stock price volatility.

What growth will Amazon.com generate?

Future prospects are an important consideration when thinking about buying a stock, especially if you are an investor seeking growth in your portfolio. Buying a great company with a robust outlook at a great price is always a good investment. So let’s also take a look at the company’s future expectations. Amazon.com’s profits are expected to grow 90% over the next few years, suggesting an extremely optimistic future. This should result in more robust cash flows and lead to higher share value.

What this means for you

Are you a shareholder? Since AMZN is currently undervalued, it could be a good time to accumulate more of your stock holdings. With an optimistic outlook, it seems as if this growth has not yet been fully reflected in the share price. However, there are also other factors to consider, such as capital structure, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on AMZN for a while, now might be the time to take a plunge. The positive future outlook is not yet fully reflected in the current share price, meaning it is not too late to buy AMZN. However, before making any investment decisions, consider other factors such as the strength of your balance sheet to make an informed investment decision.

A closer look at the Amazon.com forecasts mentioned earlier will help you understand how analysts see the stock going forward. Luckily, you can read what the analysts are forecasting here.

If you are no longer interested in Amazon.com, you can use our free platform to see our list of over 50 other stocks with high growth potential.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.