Is Amazon Stock A Good Buy For 2023?

Dec. 08, 2022 12:49 PM ETAmazon.com, Inc. (AMZN)QQQ, RTH35 Comments
The Alpha Sieve profile picture
The Alpha Sieve
2.08K Followers

Summary

  • If Amazon is to regain the trust of investors, it will first have to get back to generating positive sustainable FCF.
  • Management appears to recognize some of the potential follies of its recent investment strategies, and it looks like things could change for the better.
  • Relative to other options from the Nasdaq or the retail industry, AMZN stock no longer looks overbought.
  • The stock has entered its 2019 congestion zone, and could be close to forming a bottom.
  • Despite aggressive cuts in sell-side earnings estimates for FY23, the forward P/E valuations look promising.

Amazon prime big huge box delivered to a front door of residential building.

Daria Nipot/iStock Editorial via Getty Images

Introduction

Since peaking in November 2021, Amazon (NASDAQ:AMZN) stock has been on a veritable downtrend; in fact, this year alone, it has underperformed the broader markets by roughly 3x.

AMZN vs SPY

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Could we

FCF Per quarter

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Financial debt to EBITDA

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CFO:Sales

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Operating margin

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Cash conversion cycle

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Fixed Asset Turnover ratio

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AMZN Weekly chart

Investing

AMZN:QQQ

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AMZN:RTH

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P/E Ratio

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This article was written by

The Alpha Sieve profile picture
2.08K Followers
Investment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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