Amazon (AMZN)
Definition
Amazon (AMZN) is a multinational technology company focusing on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is publicly traded on the NASDAQ stock exchange under the ticker symbol AMZN.
5 Must Know Facts For Your Next Test
- Amazon's market value ratios include its Price-to-Earnings (P/E) ratio, which is often compared with industry peers to assess valuation.
- Amazon's high market capitalization makes it one of the most valuable companies globally and significantly affects market indices like the S&P 500.
- The company's Price-to-Sales (P/S) ratio helps investors evaluate how much they are paying for each dollar of Amazon’s sales.
- Amazon's Earnings Per Share (EPS) growth rate is a critical indicator used by analysts to project future profitability and performance.
- The company's Return on Equity (ROE) measures its ability to generate profits from shareholders' equity, providing insight into management efficiency.
Review Questions
- What does Amazon's P/E ratio indicate about its valuation compared to its competitors?
- How does Amazon's market capitalization influence major stock indices?
- Why is Amazon's EPS growth rate important for financial analysts?
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Related terms
Price-to-Earnings Ratio (P/E): A measure of a company's current share price relative to its per-share earnings.
Market Capitalization: The total value of a company’s outstanding shares of stock at current market prices.
Return on Equity (ROE): A measure of financial performance calculated by dividing net income by shareholders' equity.
