Company name Amazon.com, Inc.
Stock ticker AMZN
Live stock price [stckqut]AMZN[/stckqut]
Confident Investor Rating Poor

The following company description is from Google Finance: http://www.google.com/finance?q=amzn

Amazon.com, Inc. (Amazon.com), incorporated on May 28, 1996, serves consumers through its retail websites and focus on selection, price, and convenience. The Company also manufactures and sell Kindle devices. It offers programs that enable sellers to sell their products on its websites and their own branded websites and to fulfill orders through them , and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content..The Company operates in two segments: North America and International. North America segment consists of amounts earned from retail sales of consumer products and subscriptions through North America-focused websites such as www.amazon.com and www.amazon.ca and include amounts earned from AWS. The International segment consists of amounts earned from retail sales of consumer products and subscriptions through internationally-focused websites. In May 2012, the Company acquired Kiva Systems, Inc. (Kiva).
Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock. It is not possible to confidently invest in a company that is not currently profitable. I am removing this stock from my Watch List. I have reviewed Amazon on this site several times and it has bounced between Fair and Good each time. The last time I reviewed it, the stock had dropped to Fair but I left it on my Watch List due to the company’s impact on the retail sector. While the stock is still very popular, I can no longer be confident in its growth potential as it tries to return to profitability.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

This infographic shows that cloud computing is a major factor in the minds of IT executives. There are several ways to play the cloud computing wave with companies that are on my Watch List.

Google [stckqut]GOOG[/stckqut]

Google Inc. (Google) is a global technology company focused on improving the ways people connect with information. The Company generates revenue primarily by delivering online advertising. As of December 31, 2011, the Company’s business was focused on areas, such as search, advertising, operating systems and platforms, and enterprise. Businesses use its AdWords program to promote their products and services with targeted advertising. In addition, the third parties that comprise the Google Network use its AdSense program to deliver relevant advertisements that generate revenue. In June 2011, it launched Google+. In September 2011, the Company acquired Zagat. In May 2012, Google acquired Motorola Mobility Holdings, Inc. As of January 2012, over 90 million people had joined Google+. In April 2011, the Company acquired PushLife. On July 31, 2012, it acquired marketing start-up Wildfire. In September 2012, it acquired VirusTotal and Nik Software. (This text is from Google).

Akamai [stckqut]akam[/stckqut]

Akamai Technologies, Inc. (Akamai) provides content delivery and cloud infrastructure services for the delivery of content and applications over the Internet; ranging from live and on-demand streaming video capabilities to conventional content on Websites, to tools that help people transact business and reach out to new and existing customers. The Company provides private content delivery networks, Internet-based delivery of applications, such as store/dealer locators and user registration, software distribution capabilities, real-time ad targeting solutions, content targeting technology and enhanced security features. It offers application and cloud performance services, solutions for digital media and software distribution and storage, Website optimization services, network operator solutions, online advertising-related services and other specialized Internet-based offerings. In March 2012, the Company acquired Cotendo, Inc. In September 2012, the Company acquired FastSoft Inc. (This text is from Google).

Amazon [stckqut]amzn[/stckqut]

Amazon.com, Inc. (Amazon.com) serves consumers through its retail Websites and focuses on selection, price, and convenience. The Company’s four customer sets include consumers, sellers, enterprises and content creators. It also manufactures and sells Kindle devices. It offers programs, which enable sellers to sell their products on its Websites and their own branded Websites and to fulfill orders through it. We serve developers and enterprises of all sizes through Amazon Web Services (AWS), which provides access to technology infrastructure. In addition, it generates revenue through other marketing and promotional services, such as online advertising, and co-branded credit card agreements. The Company operates in two segments: North America and International. In June 2012, the Company acquired the publication rights from Avalon Books to over 3,000 backlist titles predominantly in the Romance, Mystery and Western categories. (This text is from Google).

eBay [stckqut]ebay[/stckqut]

eBay Inc. (eBay) is a global commerce platform. The Company enables commerce through three reportable segments: Marketplaces, Payments and GSI Commerce (GSI). These segments provide online platform, services and tools to help individuals and small, medium and large merchants globally to establish online and mobile commerce and payments. In addition, through X.commerce, it has created an open source platform, which provides software developers and merchants access to its applications programming interfaces (APIs), to develop software and solutions for commerce. As of December 31, 2011, it had more than 100 million active users transacting on its sites, millions of merchants using one or more of its platforms, and a developer community with more than 800,000 members using its APIs. During the year ended December 31, 2011, the Company acquired Brands4friends and GittiGidiyor. In May 2012, PRIMEDIA announced that it completed the acquisition of eBay’s Rent.com subsidiary. (This text is from Google).

The above infographic was not created by me. It was originally found on CloudTweaks. It is my belief that CloudTweaks owns the copyright to that image and all of its rights. It is recreated here simply for the convenience of my readers but they are encouraged to click through to the original site to see the full details of the infographic.

 

Company name Amazon.com, Inc.
Stock ticker AMZN
Live stock price [stckqut]AMZN[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Fair
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $326.18
Target stock price (averages with growth) $424.57
Target stock price (averages with no growth) $269.3
Target stock price (manual assumptions) $326.18

The following company description is from Google Finance: http://www.google.com/finance?q=amzn

Amazon.com, Inc. (Amazon.com) is a customer-centric company for three primary customer sets: consumers, sellers and enterprises. In addition, the Company generates revenue through other marketing and promotional services, such as online advertising, and co-branded credit card agreements. The Company operates in two segments: North America and International. The Company serves consumers through its retail Websites, and focus on selection, price, and convenience. It designs its Websites to enable products to be sold by it and by third parties across dozens of product categories. It also manufactures and sells the Kindle e-reader. It offers customers membership in Amazon Prime. It also provides easy-to-use functionality, fulfillment and customer service. In February 2010, the Company acquired Touchco, a touch screen technology company.

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. Due to the growth expectations for this company, I am leaving it on my Watch List.

Several times a year, a Confident Investor must reevaluate the companies in the portfolio. Keeping your money in a stock that no longer qualifies as a “Good” company can end up hurting your investment performance a great deal.  Also, there are a lot of Good Companies so losing the worst of the best is not going to impact the ability to have a balanced portfolio.  Over the coming days, this site will evaluate each stock on the Watch List.

Company name Amazon.com, Inc.
Stock ticker AMZN
Live stock price [stckqut]AMZN[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $288.33
Target stock price (averages with growth) $439.64
Target stock price (averages with no growth) $295.83
Target stock price (manual assumptions) $273.63

The following company description is from Google Finance: http://www.google.com/finance?q=amzn
Amazon.com, Inc. (Amazon.com) offers services to consumers, sellers, and developers through its retail Websites. It also manufactures and sells the Kindle e-reader. The Company offers programs that enable sellers to sell their products on its Websites and their own branded Websites. Amazon.com serves developers through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable any type of business. In addition, the Company generates revenue through co-branded credit card agreements and other marketing and promotional services, such as online advertising. Amazon.com has organized its operations into two principal segments: North America and International. In February 2010, the Company acquired Touchco, a touch screen technology company.

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

Company name Amazon.com, Inc.
Stock ticker AMZN
Live stock price [stckqut]AMZN[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Fair
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $273.4
Target stock price (averages with growth) $435.52
Target stock price (averages with no growth) $292.71
Target stock price (manual assumptions) $269.43

Confident Investor comments: I had previously evaluated Amazon and they came up a little short of qualifying as a Good Company. Now they have improved their metrics enough to qualify. At this price and at this time, I think that a Confident Investor can confidently invest in this stock.