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Amazon share price: Where next in 2020?

Amazon share price: Where next in 2020?
05 Jan 2020

The bull case remains strong for Amazon.com, Inc., whose stock value has catapulted over 1,300% in the last decade. Still, there are a few things bears would like you to note.

Jeffrey Bezos, the chief executive and founder of Amazon.com, Inc. (NASDAQ: AMZN), might have lost a sizeable chunk of his fortune in a divorce settlement to his ex-wife last year, but he still ended 2019 as the richest man on earth.

It’s not hard to see why. Since 2016, Amazon shares have steadily grown their value by over 200%, from roughly US$607 per share, to its current sale price of US$1,845 per share.

At that rate, buy-in for Amazon.com, Inc’s stocks are among the highest in the US today. This equates to a market capitalisation of US$916.15 billion, behind only Apple and Microsoft. Bezos owns an estimated 12% of the company.

A review of 2019

In 2019, shares were also able to achieve a 52-week peak price of US$2,035.80 in July. This was just a fraction below the US$2,039.51 number achieved on 04 September 2018, which had pushed the company’s market cap above one trillion US dollars – only one of three companies in history to ever do so.

Stock value started to dip in the second half of 2019 but recovered in time to hit a five-month peak sale mark of US$1,869.80 on 27 December. Despite being down nearly 10% from July’s peak, Amazon’s shares are still trading above its 52-week moving average price of US$1,789.19, a healthy finish to the year.

In terms of the company’s overall financial performance, net income continued to grow by double digits. It gained 27.5% to US$11.35 billion for the first three quarters of FY2019, as against the US$8.9 billion recorded over the same period in 2018.

By Kelvin Ong 

Source: IG

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