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- 📈 $AMZN: Could Amazon go up $50?
📈 $AMZN: Could Amazon go up $50?
Happy Tuesday folks,
Thank you everyone who subscribed last week. The goal of this newsletter is to actually be of value and something that you want to read each week…lets get to it.
Featured Stock of the Week
A note that Underwriter and this newsletter is not investing or trading advice. These are stocks and information we find interesting. Please consult with a financial professional. By reading, you agree to not take this as financial advice and assume all risk.
AMZN - Amazon
Our featured stock of this week is Amazon. The stock has been going sideways for sometime but recent developments are worth digging into more.
Prime Video Ad Tier Could Boost Revenue
In their recent earnings call, Amazon revealed the introduction of a new ad-supported tier to Prime Video. Prime has about 200 million subscribers so this could be a great way to boost revenue. |  |
Amazon Bedrock: The 1 Stop Shop for AI Infrastructure
There’s a saying of “…during a gold rush, sell shovels”. As the AI goldrush continues, Bedrock by Amazon is their new product suite to build AI apps. The company is reported to be investing over $15 billion in Japan as demand from its government and corporate sector ramps up. Amazon Bedrock Amazon has also invested up to $4B in AI startup Anthropic which will also offer enterprise AI services. |  |
Steady Growth in Profit of +200%
Amazon's profit has consistently seen growth. The latest earnings call highlighted factors such as new deals for AWS, improved efficiency in its regional fulfillment network, and the expansion of its advertising business. Their use of over 750,000 industrial robots is likely a significant contributor to their gains in efficiency and profitability. |  |
Analyst Estimate +20% Gain
Every price target for Amazon set by a major investment bank is greater than its current price. The average price target is $188.80 (21%) with a high of $241.50 (56%+). Additional Reading A note that price targets are not guaranteed, they are estimates on where the stock could go if the business performs well. A reminder that Underwriter is not investment advice and you assume all risk. |   |
What do you think about Amazon? |
Major Market News
All Week + Next 30 Days: Earnings Announcements
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Its earnings season - a time in the quarter when just about every public company will be announcing earnings. Expect a lot of price movement during this time.
What are Earnings: Earnings are when public companies announce the results of their business performance. It’s mandatory and done every quarter.
Why this matters: Earnings are very important as they’re used to:
- 1) Asses how a company is doing
- 2) Recalibrate the outlook on a company
- 3) Measure how the broader economy is doing
How it all works: In being a publicly listed company, companies abide by a strict set of rules to ensure they’re accurately reporting performance. This regulatory framework gives investors confidence that companies are being honest. The Securities and Exchange Commission -a government agency, doesn’t play around if companies fail to play by the reporting rules.
Companies file various forms with the SEC to report their earnings. Some but not all, host a 30 minute or so call to report on earnings and take questions from top analysts and investors.
The Underwriter Chatbot does have a feature which recaps earnings calls for you. |  |
Some prominent reporting earnings this week include:
- United Airlines
- Johnson & Johnson
- Proctor & Gamble
- Netflix
- Verizon
- GE
- Tesla
- Visa
- T Mobile
- American Express
How did you like today's newsletter? |
A note that Underwriter and this newsletter is not investing or trading advice. These are stocks and information we find interesting. Please consult with a financial professional. By reading, you agree to not take this as financial advice and assume all risk. Futures, stocks, bonds trading of any kind involves a lot of risk. No guarantee of any profit whatsoever is made. In fact, you may lose everything you have. We guarantee no profit whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this newsletter, its representatives, its principals, its moderators and its members, are NOT registered as securities broker-dealers or investment advisors either with the U.S. Securities and Exchange Commission, CFTC or with any other securities/regulatory authority. Consult with a registered investment advisor, broker-dealer, and/or financial advisor. Reading and using this newsletter or any of my publications, you are agreeing to these terms. Any screenshots used here are the courtesy of Underwriter. The data, quotes and information used in this blog is from publicly available sources and could be outdated or outright wrong - I do not guarantee accuracy of this information.