Amazon stock: The billion-dollar deal

Last Updated: 12. Februar 2024By

Amazon is now officially the largest online trading platform in the world. Over the weekend, it was announced that Jeff Bezos, the smart and well-known founder of the trading company, sold shares worth over $2 billion. An insider deal that could raise question marks. Is Amazon suddenly a red flag for investors? Should you sell if you have invested? Are the chances for new investments now over? I am convinced: None of these concerns are necessary.

Amazon: Almost as valuable as ever Someone simply took some money off the table for other projects. Because Amazon is currently (almost) as valuable as ever. It is only 5 euros away from reaching its all-time high. The trading trend alone is gigantic. The stock has already gained more than 16% since the beginning of the year and 28.8% in the past six months.

Despite the rising or already high prices, analysts still see immense potential for growth. The stock has an average target price of $203.50, which is almost 17% higher than the current price of around $175.

Technical levels such as the well-known 100-day moving average (GD100) or the 200-day moving average (GD200) have long been surpassed. The stock is clearly moving forward. In my opinion, the company is not undervalued in a traditional sense, but is still on a good path in this phase.

The conditions are improving in general. Central banks have ended the phase of interest rate increases, which will have an impact on consumer behavior. Online retailers like Amazon are expected to benefit from their market strength, as the bottom of the past few years has either been fully overcome or is already largely overcome.

The global economy is growing, even if we don’t see it much in Germany at the moment. Here too, the data is not brilliant, but it points to a decent recovery. Online retailers like Amazon – also based on their market strength – will benefit from this.

But even on a company-specific level, things are moving measurably forward. The company is estimated to have a P/E ratio of approximately 42 in 2024. In the coming year, with increasing profits, the P/E ratio could drop to around 33, according to assumptions. Again, these numbers are not cheap, but in Amazon’s history, such values would not be considered alarming from an economic perspective. The stock’s strong performance is therefore secured. The first quarter results will be released on April 25th – I am convinced that expectations will be met. Jeff Bezos‘ sale of shares does not worry me!

Amazon: The conditions are good – WKN: 906866 – ISIN: US0231351067 Source: