how's it going today guys I am very
excited to make this announcement but I
have a new membership site known as
stock radar where I'm going to be doing
weekly stock analysis on stocks that you
as the viewer get to decide on I've been
planning on doing this for a number of
months now and this is the perfect time
for me to get this started and I am just
very excited about this I've already
launched this group to my email list and
people who follow me on my social media
platforms but I'm officially now
launching this to you as viewers of my
youtube channel now there is going to be
a sale on this for the first week only
the membership is going to be $19 a
month but for the first seven days only
it is going to be $14 a month and that
is not just for the first month that is
for as long as you decide to be a member
of this site now every single week we're
going to be doing an in-depth analysis
of a stock and we're going to be
covering five main points first of all
the history of this company and what
this company is about how old is it and
what type of business are they involved
with the type of investment this is here
we were looking at AT&T talking about
whether or not this was a value
opportunity or a value trap and we label
AT&T as an income investment second of
all we're going to talk about the
dividend how much of a dividend they pay
how long have they been paying that
dividend and how long have they been
growing that dividend third of all we
investment why would you want to be an
investor in this stock and what might
you want to worry about the fourth thing
we cover is the barriers to entry or the
moat this company has or what protects
this company from the competition and
what would stop someone like myself
starting their own version of this
company and then fifth and finally we do
fundamental analysis of this company
looking at documents like the balance
sheet the income statement and we do an
analysis of this company to determine
the overall financial health so that is
what you guys are going to get four
videos a week on in-depth analysis of a
stock and you will also get bonus
lectures that are not going to be
available anywhere else like I said guys
for the first week only it is going to
be $14 a month and the first month is
fully refundable if you take this and
you decide that you just don't like it
just shoot me an email and I will get
you that refund no questions asked
so I'm going to be giving you guys a
free preview of stock radar my weekly
stock analysis group we're going to be
going over Amazon stock
talking about whether or not this stock
is priced for perfection it's been a top
performer over the last year so let's go
ahead and talk more about Amazon stock
how's it going today guys welcome back
the stock radar I'm very happy to have
you here and today we're gonna be
talking about one of the most requested
companies that I get asked about on my
channel and that is Amazon now up until
about a month ago this was one of my
largest investments and in one of the
bonus videos in this group I talked
about how I actually sold off my shares
of Amazon in Google not for any reason
other than the fact that I am buying a
house very soon and I had to free up
some cash now I was heartbroken to part
ways with Amazon I had over a twenty
five percent return over six months with
this stock which was insane that is not
a typical return you're gonna see from
the market but I did very well with the
Amazon again I expect this stock to
continue to perform very well I had no
reason to sell it other than the fact
that I needed some cash but we're gonna
talk more about Amazon and a lot of
people have concerns about this stock
number one because of that sky high p/e
ratio and number two it is a very
expensive stock now do remember that the
price of a stock has nothing to do with
the actual share price but the share
price is very high well over $1000 so
many people look at that stock and
they're afraid to invest that much money
into a stock because they think that
it's expensive but again that doesn't
have anything to do with that share
price we're gonna talk more about this
stock it is expensive based on other
fundamental ratios but that share price
has nothing to do with it
so first of all as we said the stock is
Amazon they trade under the symbol AMZN
they are a newer company just 23 years
old
the type of investment this is this is
an aggressive growth investment they
have a p/e ratio of 319 a very very high
price to earnings ratio and a market
capitalization as unbelievable as it
sounds of 707 billion dollars this is a
massive company now the section there
where we normally talk about the
dividends is blank because despite the
size of Amazon they are not paying
dividends they are instead investing
back into the company and trying to grow
as fast as possible rather than paying
dividends to shareholders and
most people who are investing in Amazon
are completely fine with that
due to the performance of this massive
growth stock so they're not too worried
about not getting their cash payments
from Amazon because the company is so
involved with reinvesting their earnings
back into the company to just become
more and more dominant so Amazon had
very humble beginnings starting off as
an online bookstore and they have come a
long way now Amazon is the world's
largest e-commerce retailer and the
world's largest provider of cloud
computing services a lot of people don't
even know that Amazon is involved in
cloud computing but they are absolutely
dominating this business with 62 percent
market share of cloud computing services
this is a massive business for Amazon
another Pro for Amazon is the fact that
Amazon video which comes with your
Amazon Prime subscription is very
competitive when it comes to traditional
cable as well as other streaming
services out there not only that Amazon
is producing award-winning original
content which is going to drive more
people to this platform so we are seeing
cable dying off at this point they're
not dying just yet but they are losing
millions of subscribers every single
year and more and more people are
looking for online streaming services
and Amazon has a very impressive package
with Amazon Prime not only do you get
all those benefits of that subscription
service you also get the Amazon Prime
music as well as Amazon Prime video
which is on par with other subscription
services out there like Netflix and Hulu
so they are competing with two very
large industries both the traditional
cable subscriptions and the large
companies like Netflix and Hulu offering
internet streaming of content another
Pro for Amazon is something that I look
for when I invest in companies and that
is that they are founder led so Jeff
Bezos founded Amazon 23 something years
ago as we said and he is still leading
Amazon today not only that he has a
massive stake a massive investment in
Amazon so obviously it is in his best
interest to have that share price
appreciate it's going to increase his
net worth personally I always like to
invest in founder led companies they
tend to be more innovative and they tend
to have better culture as the person who
founded that company is still in charge
another Pro for Amazon is that they have
a very clear goal and mission statement
which is to become earth
most customer centric company and I
would say that they are more than
delivering on that promise because there
are millions of loyal customers to
Amazon myself included I probably buy 15
to 20 different things every single
month on Amazon I want to get the most
out of that Prime subscription and now
that we're talking about Amazon Prime I
want to go ahead and talk about how
great that is for Amazon Amazon Prime
creates loyal customers and the thing
with that is the more you use it the
more bang you're getting for your buck
so every time I go to make a purchase
myself I always stop and I check Amazon
first and most times the price is better
on Amazon or I'm looking to buy
something in bulk and I'm even buying my
groceries on Amazon now many of my food
products that are non-perishable i buy
it all on Amazon I probably spend
anywhere from 500 to a thousand dollars
a month alone just on Amazon and the way
I see it is the more I'm buying the more
I'm taking advantage of that to day
shipping and I'm getting more bang for
my buck as far as my Amazon Prime
subscription so Amazon Prime creates
very loyal customers and they are also
finding that many people including
myself are beginning our shopping
searches on Amazon so when most people
would ordinarily go to google and type
in what they're shopping for many people
are now starting their search on Amazon
I'm one of these people and that is huge
because Amazon is now pretty much
associated with online shopping they're
the online shopping search engine
another plus for Amazon is the fact that
while ecommerce is huge for them it
still represents a very small piece of
the total retail space so in 2017
ecommerce sales accounted for about nine
point one percent of total retail sales
in the United States and that number is
expected to climb to twelve point four
percent by 2020 and I bet you guys can
take a guess who will benefit the most
from that growth in e-commerce shopping
another pro for Amazon is the fact that
they are perfect for this new
stay-at-home culture that is emerging
especially among Millennials now
personally I'm not a fan of this shift I
still like personal connections with
people talking to people over the phone
and you know when you call a restaurant
and order food that's what I like but a
lot of Millennials are afraid to call
people on the phone they do all of their
ordering
apps on their phone and they like to
shop without having any personal
interaction and some people don't even
want to leave their house they just want
to stay in their house that's the way
people are shifting that's the way
people are thinking whether or not you
agree with it
Amazon is perfect for this new
stay-at-home lifestyle that is emerging
where you don't even need to leave your
house to order supplies and order your
food whatever it is you need you can
order it and in two days it's going to
be sitting there on your porch another
plus for Amazon is that this is a global
company with global market exposure we
talked about this with coca-cola as well
as how this is a company that is
involved in countries all over the world
it gives you exposure to global markets
through a US company another Pro for
Amazon is the business culture of
innovation and disruption if I were to
describe Amazon and give them two
characteristics it would be exactly
those they are incredibly innovative and
incredibly disruptive in the retail
industry and this again comes down to
the mission statement of being earth's
most customer centric company they are
looking to serve customers in the best
way possible they look at how customers
are currently being served and they say
we can do that better another thing I
like about Amazon is the fact that they
have the ability to take on massive
projects and they can solve massive
problems in the world and that again
comes from the talent at Amazon the size
of this company and their ability to
solve large problems I kind of compare
this to Tesla where Tesla takes on these
very large problems and what's
interesting is the fact that Jeff Bezos
often says that these large projects
they are taking on it's going to take
them five to seven years to become
profitable with these businesses and
that again just comes from having that
long term long sighted vision that
Amazon is so well known for a lot of the
times some of the things they are doing
don't make sense today because they are
thinking so far forward into the future
and they're not looking for that
short-term gratification or short-term
reward for their businesses they have no
problem with making long-term
investments because they know what will
be better off for them in the future
to be doing this today now guys I am
just covering my main points as to why I
am so bullish on Amazon stock there are
many other reasons for example you could
talk about the Whole Foods acquisition
and how there
looking to get into the grocery space
and eventually build checkout lists
grocery stores in this country they're
getting back into books as far as having
storefront bookstores there are so many
reasons to be bullish on Amazon I really
couldn't cover all of them in this video
I just wanted to cover my main points
and the final one I want to talk about
is the Amazon Alexa enabled devices
now these Amazon enabled devices are
wonderful for so many reasons first of
all the potential IOT or Internet of
Things implications where you have
interconnectivity of devices in the home
where Amazon can be connected with your
lights or your security system and you
can get all kinds of feedback and you
can also control these devices with your
voice it's also the fact that this is a
very convenient tool to play music and
ask questions and get the weather and
also it is a way for you to seamlessly
order things on Amazon oftentimes we
think of what we need while we are in
that location so if you're in the
kitchen you think okay I need to buy
this now instead of writing this down on
your grocery list if you have Amazon
Alexa you can just say Alexa add this to
my grocery list or even say Alexa
purchased this for me so what amazon has
done here with these devices it's
provided something that offers
tremendous value to the consumer it
allows you to listen to music and
control your home but it also allows you
to be an even more loyal customer to
Amazon because you're going to be
ordering things through that Amazon
device okay so now that we've talked
about all these pros for Amazon it is
time to move over and talk about the
cons of this stock first of all you
cannot get over the fact that this stock
is very expensive currently they have a
price to earnings ratio of 319 that
means that this stock is trading at 319
times it's earning potential now the
reason for this as we all know is the
fact that Amazon invests heavily into
the growth of their business and they
would rather operate near break-even and
be as innovative as possible then reward
shareholders with dividends have higher
earnings and have somebody else edging
forward they want to be the most
innovative and disruptive company and
that requires a lot of capital
investment now looking at the forward
p/e it is still a 96 which is very high
so amazon stock is
very expensive and it is a stock that a
lot of people can't afford again because
of the fact that the share price is so
high now there are ways that you can buy
partial shares of stocks I've never done
it myself so I can't speak to that
but I know there are services that offer
you two by partial shares so you could
throw ten dollars into Amazon stock but
as a complete beginner if you're looking
to buy Amazon stock through a mainstream
broker maybe like Robin Hood you're
gonna have to have over a thousand
dollars to invest in Amazon stock and a
lot of beginners don't have that so one
con for the stock is it doesn't have
great accessibility especially for
beginners another con for Amazon is the
fact that they currently have a one
point seven percent profit margin now as
I've explained already this is because
they are investing as much as they can
into the growth of this company
now most Amazon shareholders trust Jeff
Bezos they know that he knows what he's
doing and he can better use that money
to grow the company but somebody looking
at this stock on a fundamental level
seeing a 1.7 percent profit margin that
does not make for an appealing
investment and the sky-high price to
earnings ratios do mean that Amazon is
priced for perfection now before you
think that I'm wrong about that I would
say that Amazon does have amazing growth
potential especially with the projected
growth of e-commerce but you can't get
around the fact that the share price has
been climbing so fast
and anyone hiccup for Amazon could
result in a correction with this stock
do I expect that to happen personally I
do not we did see a dip in Amazon when
we saw the sell-off on the Dow in 2018
but again it was not that much of a
correction and they bounce back like
overnight pretty much they bounced right
back so I don't expect to see Amazon
stock tumble by any means but understand
that at the current valuation amazon
needs to execute with perfection in
order to give shareholders what they are
looking for and if they are not doing
that then you may see a sell-off take
place with Amazon so that is the one
major con with this stock as it is very
expensive so moving on let's talk about
the moat for Amazon or their barriers to
entry basically what stops me from
starting my own Amazon like business
number one has to be their fulfillment
network they have an absolutely massive
fulfillment network
in order to have two days shipping in
all these different places and in some
cases having overnight shipping or
things like that it requires a massive
fulfillment network now how big is this
network in the United States alone they
have 119 amazon fulfillment centers
what's amazing to me is how much these
facilities actually cost the most
expensive one that has been built is in
Utah and that was a two hundred million
dollar facility so if I wanted to start
my own Amazon like business and offer
two-day shipping all over the United
States I would have to build hundreds of
multi-million dollar fulfillment
facilities in order to do that that
makes this a very capital-intensive
business and one that a lot of people
cannot do the second barrier to entry
for Amazon is that they have very loyal
customers I am a very loyal customer
myself and in September of 2017 they had
90 million Amazon Prime subscribers this
again as we said creates four very loyal
customers because the more you order on
Amazon the more bang you get for your
buck and you are getting more out of
your subscription number three is the
fact that Amazon is sitting on a massive
amount of data they are a data company
and again that Whole Foods acquisition
just gave them access to more data as
far as customer shopping habits so
knowing what products to recommend to
people what products to show on the
front page there is a massive amount of
value in that data and that is something
that people could not compete with it
would be very difficult to figure out
what you should be recommending to
people and there was tremendous value in
that data number four is the economy of
scale and what that means is the fact
that Amazon is buying so many products
from these companies they are able to
negotiate pricing and get things at a
cheaper price if you were going to start
selling things online and have your own
e-commerce business you would not be
buying anywheres near as much as Amazon
is buying and as a result you are going
to be paying a higher price for those
goods they can negotiate because they
have leverage and they have a massive
amount of volume and as such they are
able to compete on price because they
are so large and the fifth and final
barrier that I see here for Amazon and
there may be others that you guys see as
well is their project appetite it's the
fact that they are able to take on these
massive projects that many other
companies out there are just too small
or too timid to take on if
you told the company they were going to
be taking on a project and they wouldn't
see any profits from that for five to
seven years
most of them would shy away from that
but Amazon runs towards those problems
they have a massive appetite for these
big problems and they execute with
perfection
anyways guys that wraps up the beginning
of this talking about Amazon as far as
they stock the fact that they don't pay
a dividend the very high p/e ratio the
pros and cons and the moat now we're
gonna switch over and talk about the
fundamentals of Amazon stock okay so now
we are going to look at some of the
fundamentals for Amazon first of all we
are looking at the assets total assets
for Amazon have grown every single year
at an average rate of 17.8% per year
since 2014 and total assets grew sixty
two point two percent from quarter 1 of
2017 to quarter 4 of 2017 what I'm
typically looking for is double-digit
growth with total assets but seeing
total assets growing sixty two point two
percent in one year from quarter one to
quarter four of 2017 is absolutely
incredible now cash and cash equivalents
have grown as well every single year at
an average rate of twelve point two
percent per year since 2014 and cash and
cash equivalents grew thirty two point
nine percent from quarter one of 2017 to
quarter four of 2017 now it is important
to remember that quarter four is always
going to be the best quarter for Amazon
due to the increased sales for the
holiday shopping season so what we can
gather from this is that Amazon is
sitting on a pile of cash and total
assets are seeing consistent
double-digit growth which is something I
love to see from an investment the
growth of assets in 2017 was
unbelievable and now we are going to
look at the liabilities for Amazon so
total liabilities have grown every
single year at an average rate of thirty
four point six percent per year since
2014 and total liabilities grew seventy
four point seven percent from quarter 1
of 2017 to quarter four of 2017 so what
we can gather from that is that total
liabilities are growing at a faster rate
than total assets which is not something
you typically like to see as an investor
when we look at the coverage ratio for
current assets and current liabilities
we see that curve
assets have coverage of them but not a
lot they have a one point zero four to
one coverage ratio for 2017 that means
that all the assets that are in cash or
readily convertible to cash within one
year cover all their short-term debt or
debts expected to be paid in one year so
what we can gather from this is that
amazon takes on a lot of debt to grow at
the fastest rate possible and some
investors might not be comfortable with
the slim coverage of current liabilities
however Amazon has a proven track record
with this break-even business model so
most people are not going to question it
next we are going to look at
stockholders equity and net cash flow
from operations so we saw that
stockholders equity has grown every
single year at an average rate of thirty
seven point four percent per year since
2014 and again what I am typically
looking to see is double-digit growth
seeing an average growth rate of thirty
seven point four percent is stellar
stockholders equity grew twenty seven
point eight percent from quarter one of
2017 to a quarter four of 2017 equally
impressive now net cash flow from
operations has grown every single year
at an average rate of 42 percent per
year since 2014 and the net cash flow
from operations grew 221 percent from
quarter 3 of 2017 to a quarter 4 of 2017
and this is mostly attributed to holiday
spending so what we are seeing here is
that stockholders equity is growing at
an incredibly high rate which is
something you always like to see as an
investor so looking at Amazon stock
performance we see that amazon has had
stellar performance over the last five
years Amazon stock is up 71 point four
percent over the last year compared to a
16 point two percent return from the S&P
500 so amazon has significantly
outperformed the market over the last
year and equally as impressive over the
last five years
amazon stock is up 445 point eight
percent compared to an 80 point two
percent return from the S&P 500
so amazon has also significantly
outperformed the market over the last
five years so what we can gather from
this analysis is that amazon is an
aggressive growth stock and the wind
appears to be in their sails however the
downside with this
and the only downside I can see is that
sky-high price to earnings ratio and the
big question is are they priced for
perfection and this also blew my mind
looking at this here as I'm sure you
guys know we saw a correction take place
in the market between January and
February of 2018 on the right we have
the S&P 500 and on the Left we have
Amazon stock a lot of people want to get
in on Amazon stock and they want to wait
until the right time to buy it but
looking at what happened during that
correction that took place we saw that
this barely even impacted Amazon stock
Amazon stock had a very slight
correction but it's already back trading
at a level above where it was before the
correction had taken place and if you
look at the S&P 500 the S&P 500 is still
lower than it was before that correction
took place so you're going to have a
very difficult time trying to buy Amazon
stock on a dip looking at things like
this and finally we have some key
financial notes for Amazon so gross
profit margin has increased every year
since 2013 reaching 37.1% in 2017 net
profit margin however was just 1.7
percent in 2017 so they have a very slim
profit margin because they are investing
heavily back into the business now
Amazon reports their income in three
segments that's Amazon Web Services
International and North America and
sales for the Amazon Web Services
segment grew forty two point nine
percent in 2017 sales for the
international segment growth twenty
three point four percent in 2017 and
sales for the North America segment grew
thirty three percent in 2017 these
numbers are absolutely fantastic Amazon
is seeing incredible growth in their
operations however it is worth
mentioning that the international
segment is still operating at a loss due
to capital investment in infrastructure
for fulfillment anyways guys this wraps
up our analysis of Amazon stock I hope
you guys enjoyed this and I will see you
in the next video I hope you guys
enjoyed this video talking about Amazon
if you guys are interested in joining
stock radar remember for the first week
only it is going to be just fourteen
dollars and that price is going up to
nineteen dollars after that and again if
you guys start this off and you watch
the videos and you decide that it just
isn't for you all you have to do is send
me an e
and that first month payment is fully
refundable anyways guys thank you for
taking the time to watch this video and
for those of you who decide to join the
membership I just want to sincerely
thank you for supporting my channel and
helping me do what I do every single day
here on YouTube but thank you guys for
watching and I hope you have a great
rest of your day
#Best Education Page #Online Earning
online earning,make money online, earn money online, online earning, online earning sites,
make money online free, online money income, earn money online free, money online, best way to earn money online, online income site, money earning websites, best online earning sites, easiest way to earn money online, earn money payment bkash, online money income site
Posts
No comments:
Post a Comment