Will Amazon’s Stock Continue Its Ascent?

January 30, 2013

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Amazon is normal and a non-factor. The balance sheet is strong.

	Debt-To-Equity	Cash	Long-Term Debt
AMZN	0.35	$5.25 Billion	$2.68 Billion
EBAY	0.22	$9.41 Billion	$4.11 Billion
OSTK	0.80	$74.53 Million	$17.00 Million

T = Technicals on the Stock Chart Are Strong

Amazon has outperformed the market over the past year, but its run hasn’t been as impressive as eBay Inc. (NASDAQ:EBAY) or Overstock.com Inc. (NASDAQ:OSTK).

	1 Month	Year-To-Date	1 Year	3 Year
AMZN	10.53%	8.02%	41.04%	116.10%
EBAY	11.95%	9.34%	76.57%	142.20%
OSTK	-0.57%	-3.07%	101.00%	16.95%

At $273.65, Amazon is currently trading above all its averages.

50-Day SMA	255.58
100-Day SMA	250.66
200-Day SMA	236.43

E = Earnings Have Been Inconsistent

FY2012 net sales increase 27 percent to $61.09 billion, but there was a net loss of $39.00 million. However, tech investors are much more interested in top-line growth, and Amazon has shown consistent annual revenue growth.

	2007	2008	2009	2010	2011
Revenue ($)in billions	14.84	19.17	24.51	34.20	48.08
Diluted EPS ($)	1.12	1.49	2.04	2.53	1.37

We already know what happened this quarter. Now let’s take a look at previous quarters.

	9/2011	12/2011	3/2012	6/2012	9/2012
Revenue ($)in billions	10.88	17.43	13.18	12.83	13.81
Diluted EPS ($)	0.14	0.38	0.28	0.01	-0.60

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