Amazon (AMZN, Financial) shares dropped by 7.56% today, closing at $181.19, as the market reacted to President Trump's announcement of new "reciprocal tariffs" impacting all U.S. imports at a minimum rate of 10%.
The decline in Amazon's stock price comes amid heightened market volatility, but underlying company fundamentals still signal strength. Despite the short-term pressure on shares, the stock's GF Value indicates it is fairly valued at $178.85, suggesting a potential stabilization in the near future. For reference, you can view more about Amazon's GF Value.
Amazon.com Inc (AMZN, Financial) demonstrates robust financial metrics. The company's trailing P/E ratio stands at 32.76, which is close to its 10-year low of 34.85, indicating potential value for investors. Furthermore, Amazon boasts a price-to-book ratio of 6.71, nearing a 2-year low of 6.78.
On the financial strength front, Amazon's strong Altman Z-score of 5.48 underscores its financial stability, complemented by a high Piotroski F-Score of 7, which signifies a very healthy financial situation. The company's operating margin is expanding, which further contributes to its profitability prospects.
Amazon's growth trajectory remains intact, with a revenue growth rate of 8.6% for the past year and a 15.4% annual growth over the last five years. The firm's market capitalization stands at approximately $1.92 trillion, reinforcing its position as a market leader.
Despite recent insider selling activity, with eight transactions amounting to 120,641 shares sold over the past three months, the company's long-term growth and profitability metrics continue to be encouraging. Investors may view these price dips as an opportunity to explore Amazon's strong fundamentals and growth potential.
