AMZN - Embedded Expectations Analysis - 2022 05 26
Amazon. com, Inc. (AMZN) currently trades above corporate but around historical averages relative to Uniform earnings, with a 41.4x Uniform P/E (Fwd. V/E').At these levels, markets are pricing in expectations for Uniform ROA to remain at 10% levels, accompanied by 12% Uniform asset growth.
Meanwhile, analysts expect Uniform ROA to slightly fade to 9% by 2023, accompanied by 13% Uniform asset growth.
If sustained going forward, these levels would imply a stock price closer to $2019, representing approximately 6% equity downside for the firm.
Moreover, the firm's most recent earnings call suggests management may have concerns about additional costs, capacity, employment, and AWS.
Amazon.com serves consumers through its online and physical stores. The company also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, and Ring, and the company develops and produces media content. The company operates customer service centers and provides programs that enable sellers to grow their businesses, sell their products in its stores, and fulfill orders through the company The company serves developers and enterprises of various sizes, including start-ups, government agencies, and academic institutions, through its Amazon Web Services segment, which provides a set of global compute, storage, database, and other service offerings. The company also provides services, such as advertising.
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