Introduction
Amazon is a giant corporation that encompasses various products and services. It is a global marketplace that tries to become the most consumer-centric company to meet diverse clients’ needs in various locations (Amazon, 2022). Its success is evidenced by its stable growth and becoming one of the leaders in its sphere.
Following its financial report, in 2020, the company managed to generate $513,983 billion net sales (Amazon, 2022). It shows significant progress, as in 2021, Amazon reported $469,822 billion in net sales (Amazon, 2022). It resulted from the effective financial strategy and the focus on entering new markets, expanding the company’s presence, and empowering its positions in other segments, such as cinema, technologies, and streaming services (Amazon, 2022). As a result, the corporation preserved its leading positions and overcame the crisis caused by the pandemic.
Criteria for Review of Amazon’s Financial Standing
Thus, in investigating Amazon’s financial standing, it is essential to focus on the main points. First, the net income, or the revenues minus all expenses, interest, and taxes, should be considered (Alexander, 2018). For the brand, in 2022, the net income comprised $33,364; in 2021, the number was $21,331 (Amazon, 2022). It shows the brand’s health, evolution, and ability to compete with the closest rivals.
Second, in reviewing Amazon’s financial aspect, it is critical to devote attention to current assets and liabilities as they are fundamental measures determining the company’s market success (Alexander, 2018). Amazon reports that in 2022 its total current assets comprised $146,791 billion, while total assets were estimated at $462,675 billion (Amazon, 2022). It is also a growth compared to the previous year, as $420,549 billion was reported in 2021 (Amazon, 2022).
Liabilities are another critical determinant of the company’s development and financial stability. For this reason, the review of financial standing should be an essential part of the analysis. Amazon reports $462,675 billion in total liabilities and stockholder’s equity, which indicates its strengths and development.
Finally, the stock prices and basic earnings per share should be determined by analyzing the company’s performance and ability to attract new shareholders. Amazon states that in 2023, basic earnings per share 2022 comprised $3.24, which is also more prominent than in 2021 (Amazon, 2022). In such a way, it remains attractive to potential investors.
Moreover, the existing shareholders might consider increasing their shares and the amount of investments. The given financial data is critical for analyzing the company’s standing, determining its health, and deciding whether it can be an appropriate option for investment.
Financial Information
Amazon’s Stock Exchange
Amazon is a giant public corporation whose stock can be traded on specific markets. The brand is traded on NASDAQ, with the specific symbol AMZN. For investors and ordinary individuals, it means they can monitor the price changes and become shareholders when the share cost is appropriate for them.
Price of 1 Share of Company Stock 1 Year Ago and Today
Thus, using the historical data from NASDAQ, it is possible to find the price of 1 share of company stock one year ago:
09.28.2022 – $118.01 (“AMZN historical data,” n.d.)
Thus, using the same information from NASDAQ, one can determine the price of 1 share of company stock today:
09.28.2023 – $125.98.
The Reason Behind the Stock Prise Change Over the Course of a Year
The historical data analysis shows that the company’s stock prices grew and demonstrated a stable increase during the year. However, in the second half of September, a decline from $144.72 on 14.09 to $125.98 per share today was observed (“AMZN historical data,” n.d.). It is possible to assume that the company’s challenges in Amazon Web Services, cloud infrastructure, and e-commerce contributed to the reduced cost per share and declined interest (Bowman, 2023). Additionally, the company has difficulties returning to the pre-pandemic level, which might impact its investors’ decision-making.
Investment Opportunity
Although a slight decline in the cost per share can be observed in September 2023, Amazon might still be considered a good investment option. Several facts can support the given statement. The company’s financial standing analysis shows that it has evolved and has shown a significant rise compared to previous years. It means there are no risks of collapse or a critical decrease in stock prices (Alexander, 2018). Furthermore, the investigation of NASDAQ data reveals that the prices per share grew during the reported period, meaning that nowadays, investors can benefit from their decisions to buy shares in previous periods.
Conclusion
In such a way, Amazon’s financial standing can be analyzed to make decisions about possible financial investments. The assets and liabilities, net income, price per share, and revenue are essential indicators of the company’s health. The annual report, or 10-K form, should be used to source relevant and credible financial data.
Additionally, the history of prices per share acquired using NASDAQ can help make financial decisions. In general, Amazon has a strong position in the market, evidenced by its report and the positive dynamics in the cost of its shares. For this reason, it is possible to recommend investing in the company to generate additional income and benefit from the price difference per share.
References
Alexander, J. (2018). Financial planning & analysis and performance management. Wiley.
Amazon. (2022). Annual report. Web.
AMZN historical data. (n.d.). NASDAQ. Web.
Bowman, J. (2023). Why Amazon stock was falling today. The Motley Fool. Web.
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