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Amazon Stock to split 20 for 1 on July 15, 2022


MickinMD
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I've had stock in Amazon since 2019 when I decided to add a little risk to my conservative retiree's portfolio. But, as a sector gorilla and strong, steady growth, it's not all that risky.

I sold some of it to pay for some of the house addition stuff I did last year.   But I more than doubled what I had left today.

On July 15th, I'll get 19 additional shares for each share I own.  Of course, the price of the stock with drop 20x - though past averages say it will do a little better than 1/20th the pre-split price!

It hasn't moved a lot in price since 2019 and has lost value this year, dropping from the low $3000's to the current $2785.58/share

It's expected to decrease earnings in 2022 after a very good year in 2021, so the share price has fallen.

But the consensus of expert analysts surveyed by Yahoo expect the price to be $4099 (divided by 20) in the next 12 months.

Of the 52 analysts rating Amazon, 19 say its a strong buy, 32 say buy, and 1 says hold.  The split does NOT have an effect on that long-term outlook.

Amazon averaged an annual earnings growth of 100% per year for the past 5 years.

Expert consensus is for earnings growth -25% for 2022, +49% for 2023, and an avg. of 34.8% annually for the next 5 years.

Amazon's stock is reasonably priced at a P/E of 43.

Quarterly earnings were helped by people staying home during the pandemic, but there's still no good competitor to Amazon, and it has durable competitive advantages in terms of purchase and delivery contracts as well as other businesses including Internet cloud service.

$64.78 annual earnings as of Q4 (2/3/22 report).

Q4 21: $27.75
Q3 21: $6.12
Q2 21: $15.12
Q1 21: $15.79
Q4 20: $14.09
Q3 20: $12.37
Q2 20: $10.30
Q1 20: $  5.01
Q4 19: $  6.47

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3 hours ago, MickinMD said:

I've had stock in Amazon since 2019 when I decided to add a little risk to my conservative retiree's portfolio. But, as a sector gorilla and strong, steady growth, it's not all that risky.

I sold some of it to pay for some of the house addition stuff I did last year.   But I more than doubled what I had left today.

On July 15th, I'll get 19 additional shares for each share I own.  Of course, the price of the stock with drop 20x - though past averages say it will do a little better than 1/20th the pre-split price!

It hasn't moved a lot in price since 2019 and has lost value this year, dropping from the low $3000's to the current $2785.58/share

It's expected to decrease earnings in 2022 after a very good year in 2021, so the share price has fallen.

But the consensus of expert analysts surveyed by Yahoo expect the price to be $4099 (divided by 20) in the next 12 months.

Of the 52 analysts rating Amazon, 19 say its a strong buy, 32 say buy, and 1 says hold.  The split does NOT have an effect on that long-term outlook.

Amazon averaged an annual earnings growth of 100% per year for the past 5 years.

Expert consensus is for earnings growth -25% for 2022, +49% for 2023, and an avg. of 34.8% annually for the next 5 years.

Amazon's stock is reasonably priced at a P/E of 43.

Quarterly earnings were helped by people staying home during the pandemic, but there's still no good competitor to Amazon, and it has durable competitive advantages in terms of purchase and delivery contracts as well as other businesses including Internet cloud service.

$64.78 annual earnings as of Q4 (2/3/22 report).

Q4 21: $27.75
Q3 21: $6.12
Q2 21: $15.12
Q1 21: $15.79
Q4 20: $14.09
Q3 20: $12.37
Q2 20: $10.30
Q1 20: $  5.01
Q4 19: $  6.47

Methinks the world's attention to war developments, just-in-time focus on oil and gas, is pulling people away from tech. Also people might be worried about how this war might develop and affect e-commerce buying trends.  Well, we know ordering something from Russia is not a great idea  right now for customer service.

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