Benchmarks (as of 2024-10-04)

• Performance Comparison:
  • AMZN has generally outperformed XLY over longer periods, such as 1 year, 2 years, and 3 years. However, in shorter periods, such as 3 months and 6 months, AMZN has underperformed XLY. This suggests that AMZN's performance is more volatile and less consistent than XLY's.
• Risk and Return Analysis:
  • AMZN has delivered higher annualized returns than XLY over the analyzed period. However, this higher return comes with a higher level of risk.
  • AMZN has consistently exhibited higher annualized volatility than XLY, indicating that AMZN's price fluctuations are more pronounced.
  • AMZN has experienced significantly larger drawdowns than XLY, with a maximum drawdown of 56.15% compared to XLY's 39.67%. This suggests that AMZN is a riskier investment than XLY, as it is more susceptible to price declines.
• Risk-Adjusted Performance:
  • XLY has consistently shown a higher Sharpe ratio than AMZN, indicating that XLY has delivered better risk-adjusted returns.
  • AMZN's beta value greater than 1 suggests that it is more sensitive to market movements than XLY. This means that AMZN's price is likely to fluctuate more than XLY's during periods of market volatility.
• Overall Assessment:
  • AMZN has shown strong growth potential and has delivered higher returns than XLY. However, this comes with a higher level of risk, as evidenced by its higher volatility and larger drawdowns. XLY, on the other hand, has provided more consistent performance and better risk-adjusted returns.
  • Investors seeking higher returns with a higher risk tolerance may consider AMZN. However, investors seeking more stable performance and better risk-adjusted returns may prefer XLY.

Peers Price History(as of 2024-10-04)

• Performance Comparison:
  • AMZN has shown mixed performance compared to its peers. While it has outperformed GOOGL in some periods, it has consistently underperformed META, particularly over longer timeframes. This suggests that AMZN's growth trajectory may be lagging behind META, despite its strong performance in certain periods.
• Risk and Return Analysis:
  • AMZN has generally provided lower annualized returns than META, but higher returns than GOOGL. However, this comes with a higher level of volatility. AMZN's annualized volatility has been consistently higher than GOOGL, indicating a higher risk profile.
  • AMZN has experienced significant drawdowns, with its maximum drawdown exceeding 50% in Q4 2022. This is comparable to GOOGL's maximum drawdown, but significantly lower than META's maximum drawdown of over 70%. This suggests that AMZN's risk profile is more moderate than META's, but still higher than GOOGL's.
• Risk-Adjusted Performance:
  • AMZN's Sharpe ratio has been consistently lower than GOOGL's, indicating that GOOGL has offered better risk-adjusted returns. However, AMZN's Sharpe ratio has been higher than META's, suggesting that AMZN has been more efficient in generating returns relative to its risk.
  • AMZN's beta has consistently been above 1, indicating that it is more volatile than the overall market. However, its beta has been lower than META's, suggesting that AMZN is less sensitive to market movements than META.
• Overall Assessment:
  • AMZN has shown mixed performance compared to its peers. While it has outperformed GOOGL in some periods, it has consistently underperformed META, particularly over longer timeframes. This suggests that AMZN's growth trajectory may be lagging behind META, despite its strong performance in certain periods.
  • AMZN's risk profile is more moderate than META's, but still higher than GOOGL's. This is reflected in its higher volatility and drawdowns compared to GOOGL, but lower volatility and drawdowns compared to META.
  • AMZN's risk-adjusted performance has been better than META's, but worse than GOOGL's. This suggests that while AMZN has been more efficient in generating returns relative to its risk than META, it has not been as efficient as GOOGL.
  • Overall, AMZN appears to be a more moderate growth company with a higher risk profile than GOOGL, but a lower risk profile than META. Investors seeking higher growth potential may prefer META, while investors seeking a more moderate risk profile may prefer GOOGL.

Peers Fundamentals(as of 2024-06-30)

1. Market Position and Size:

   • AMZN is the second-largest company in the peer group by market capitalization, with a market cap of $1,806,500 million, trailing Alphabet, Inc. (GOOGL) at $1,991,510 million but exceeding Meta Platforms, Inc. (META) at $1,311,000 million.
   • AMZN's market capitalization is significantly larger than its revenue, EBITDA, and net income, indicating a premium valuation compared to its peers.
   • AMZN's market position within the peer group is characterized by its substantial size and dominance in the e-commerce sector. While GOOGL holds a larger market cap, AMZN's revenue and profitability are significantly higher, suggesting a stronger market position in its core business.

2. Profitability and Efficiency:

   • AMZN's Gross Profit Margin, EBITDA Margin, and Net Profit Margin are lower than its peers, particularly GOOGL and META, but significantly higher than the industry average.
   • Despite its large size and revenue, AMZN's profitability metrics are lower than its peers, potentially due to its competitive pricing strategies and investments in growth initiatives.
   • AMZN's efficiency in generating returns is lower than its peers, suggesting that AMZN may be less efficient in utilizing its assets and capital to generate profits compared to its peers. However, AMZN's returns are significantly higher than the industry average, indicating a strong competitive advantage in terms of asset utilization and capital efficiency within the retail trade sector.

3. Financial Health and Stability:

   • AMZN's liquidity position is weaker than its peers, with a lower Current Ratio and Quick Ratio.
   • AMZN's debt position is relatively strong compared to its peers, with a lower Total Debt to Total Equity Ratio and Debt / EBITDA.
   • AMZN's overall financial health is strong, characterized by robust profitability and cash flow generation, a dominant market position, and significant investments in growth. However, AMZN's slower revenue growth, lower efficiency in generating returns, and high debt levels are areas of concern that could impact its future performance.

4. Valuation and Market Perception:

   • AMZN's valuation metrics are mixed compared to its peers and industry averages. While its Enterprise Value To Sales and Price To Sales Ratio are lower than its peers, indicating a lower valuation relative to revenue, its Price To Earnings and Price to Book Ratio are higher, suggesting a premium valuation relative to earnings and book value.
   • This suggests that the market may be placing a higher value on AMZN's growth potential and future earnings prospects compared to its peers.

5. Cash Flow and Capital Management:

   • AMZN's Net Operating Cash Flow is lower than GOOGL's, but it is higher than META's, indicating a strong ability to generate cash from operations.
   • AMZN's Total Capital Expenditure is higher than its peers, suggesting significant investments in growth initiatives.
   • This results in a lower Free Cash Flow compared to its peers, indicating a lower level of cash available for shareholder returns.

6. Growth and Future Prospects:

   • AMZN's growth metrics show a mixed performance compared to the peer group average. AMZN consistently outperforms in terms of EBITDA, Net Income, Basic Earnings per Share, Free Cash Flow, and Free Cash Flow Margin growth, indicating strong profitability and cash flow generation. However, AMZN consistently underperforms in terms of Sales/Revenue, Total Assets, and Book Value Per Share growth, suggesting a slower pace of revenue and asset expansion compared to its peers.
   • AMZN's 5-year CAGR figures are consistently higher than its 3-year CAGRs for Sales/Revenue, EBITDA, Net Income, Basic Earnings per Share, Free Cash Flow, Free Cash Flow Margin, Total Assets, and Book Value Per Share. This indicates that AMZN's growth has been accelerating over the past five years, suggesting a positive long-term growth trend.
   • AMZN's growth profile is characterized by strong profitability and cash flow growth, but slower revenue and asset expansion compared to its peers. This suggests that AMZN may be prioritizing profitability and cash flow generation over rapid revenue growth, potentially due to its focus on long-term sustainability and market share dominance.

7. Potential for Investment:

   • AMZN's investment attractiveness is mixed. While its strong profitability, cash flow generation, and growth potential are attractive, its slower revenue growth, lower efficiency in generating returns, and high debt levels are areas of concern. Investors should carefully consider these factors before making an investment decision.

8. Key Risks and Considerations:

   • AMZN's slower revenue growth could indicate challenges in expanding its market share or capturing new customer segments.
   • AMZN's lower efficiency in generating returns suggests that it may be less efficient in utilizing its assets and capital to generate profits compared to its peers.
   • AMZN's high level of debt may pose a risk to its financial stability, particularly if interest rates rise or economic conditions deteriorate.

9. Overall Assessment:

   • AMZN is a financially strong company with a dominant market position, robust profitability, and significant investments in growth. However, its slower revenue growth, lower efficiency in generating returns, and high debt levels are areas of concern that could impact its future performance. Investors should carefully consider these factors before making an investment decision.