Amazon Company Stock Price Analysis

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Course
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Amazon Company
Amazon Inc. is one of the leading companies in the world in terms of electronic
commerce. The company which was founded by Jeff Bezos in the late months of the year 1994
and it was launched online as book hub the following year (Feigenbaum et al., 202). Since then the
company started selling everything in its online platform. Since then, has become a leading
retailing company all over the globe. The main strength for the company is its lower prices as
compared to its competitors; this has led to having a loyal customer base of more than twenty
million shoppers all over the world (Frey, 22). The main purpose of this essay is to analyze the
stock price of the company over a period of the last three years. We will present the stock prices
of the company using charts to display the trend of the stock of the stock prices for the period.
We will base our analysis of the company stock prices using the return on sales, the current ratio
and the inventory turnover for the three consecutive years (Figueiredo, 34).
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From the excel file given, we will plot the closing stock price against the date as shown in
the graph below
Amazon stock price for the last

three years descriptive statistics
Mean 702.289683
Standard Error 8.15712833
Median 717.93
Mode 1164.13
Standard Deviation 224.432235
Sample Variance 50369.8281
Kurtosis -0.9029368
Skewness 0.04067339
Range 908.88
Minimum 286.95
Maximum 1195.83
Sum 531633.29
Count 757
From the table above analyzing the closing stock price per day, for the last three years for
Amazon Company; we see the average stock price for the whole period is 702.289683 dollars
with a standard error of 8.15 dollars. The median stock price for the entire time is 717.93 dollars,
and the most selling price per stock which is the modal stock price is valued at 1164.13 dollars.
The maximum stock price is valued at 1195 .83 dollars while the minimum selling price per
share is 286.95.This yields a range value of 908.88 dollars. The minimum amount corresponded
to a period when the Amazon stock was valued lowly, and this occurred during on 15th of
January in the year 2015 (Feigenbaum et al., 122).
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The following graph on the next page is a time series plot for the stock prices for three years.
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From the time series plot, we see that the stock price for the Amazon Company has been
increasing significantly for three years hence there is a positive trend in the costs of the Amazon
stock for the last three years. This is seen by the fact that at the beginning of the three year period
which is in the middle of December 2014 the stock price was valued at 306.07 up to the current
time which is on December 13, 2017, where the price is valued at 1164.13 dollars.
The next thing is to analyze the companies using some ratios such as the return on assets
(ROA), current ratio and inventory turnover for the last three financial years.
Amazon.com Inc.
Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
2016 2015 2014 2013 2012
Return on Sales
Gross profit margin 35.09% 33.04% 29.48% 27.23% 24.75%
Operating profit margin 3.08% 2.09% 0.20% 1.00% 1.11%
Net profit margin 1.74% 0.56% -0.27% 0.37% -0.06%
Return on Investment
Return on equity (ROE) 12.29% 4.45% -2.24% 2.81% -0.48%
Return on assets (ROA) 2.84% 0.91% -0.44% 0.68% -0.12%
Source: Based on data from Amazon.com Inc.
Annual Reports
From the above table, we can see that Amazon has been operating profitably as seen by
the gross profit margin from the various financial years. The gross profit margin, the net profit
margin and the operating profit margin have been increasing significantly for the last four fiscal
years (Feigenbaum et al., 202). Considering the return on investment (ROE) and the return on
assets (ROA), apparently it shows that the Amazon has been thriving for the last couple of years
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since the return on investment has been increasing significantly (Frey, 42). However, in the
financial year that ended on 31st December 2014, there was a drop return on investment ratios,
and also the net profit margin and this can be attributed to some factors that are beyond the scope
of this essay.
Conclusion
Amazon has built up a phenomenal client bolster just in the traverse of most recent 15
years with its one of a kind plan of action of online business. This not only enables the
organization to have edge focal point over the contenders yet but also, makes it a cost pioneer in
its industry. It bridges all the supply chains to reach the purchasers through it creative online
business approach. This is has led to the increase in the profit margin for the company as
analyzed above. From the analysis of the stock price analysis for the Amazon Company, as
shown above, we see that Amazon Company is destined for more success in the future.
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Work Cited
Feigenbaum, Edward, Pamela McCorduck, and H. Penny Nil. The rise of the expert
company.Vol. 240. New York: Times Books, 20.
De Figueiredo, John M. "Finding sustainable profitability in electronic commerce." Sloan
Management Review 41.4 (2000): 41.
Frey, Christine, and John Cook. "How Amazon.com survived, thrived and turned a
profit." Seattle Post-Intelligencer 28.01 (2004).
(Frey, 22)
(Feigenbaum et al., 202)
(Figueiredo, 34)
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the graph below

Amazon stock price for the last

January in the year 2015 (Feigenbaum et al., 122).

company.Vol. 240. New York: Times Books, 20.

De Figueiredo, John M. "Finding sustainable profitability in electronic commerce." Sloan

Management Review 41.4 (2000): 41.

profit." Seattle Post-Intelligencer 28.01 (2004).

(Feigenbaum et al., 202)

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