Amazon (AMZN, $1,714.83) focuses on physical stores to beat competition
E-commerce giant Amazon is now planning to open more physical grocery stores, a sector currently dominated by the likes of Walmart (WMT).
According to the Wall Street Journal, with the acquisition of Whole Foods Amazon got its first real taste of store-based grocery sales, but Amazon’s grocery models will be starkly different from that of Whole Foods.
But this move comes with its own set of challenges. Amazon can't evade the costs associated with getting groceries to consumers. Even though the company could remove expenses associated with established physical stores, it’s already a notoriously low-margin business, and Amazon Web Services is the primary source for the company's profits.
Additionally, recent figures suggest that Amazon’s online grocery sales are not remarkably higher than those of Walmart’s physical grocery sales – 12.5% to 11.1% in 2017.
Going ahead with its plans, Amazon will now have to open dozens of relatively smaller brick-and-mortar locations across the country. The first such store is expected to appear in Los Angeles, possibly as soon as the end of this year, and more to follow in 2020. Few other steps include opening 3,000 Amazon Go stores by 2022, closing all 87 in-store pop up locations inside retailer like Kohl’s (KSS), and opening traditional grocery stores by acquiring smaller, local chains among others.
Among these, a more traditional grocery store is probably the best idea as it gives opportunities for Amazon to serve more customers, who'll be further immersed in its Prime loyalty ecosystem. In addition, the vast customer data is has acquired over the years, the physical sales are likely to bear fruits.
AMZN in downward trend: price expected to drop as it breaks its higher Bollinger Band on June 06, 2025
AMZN broke above its upper Bollinger Band on June 06, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 47 similar instances where the stock broke above the upper band. In of the 47 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for AMZN moved out of overbought territory on June 11, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 69 cases where AMZN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on June 18, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 04, 2025. You may want to consider a long position or call options on AMZN as a result. In of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 324 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 282 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.278) is normal, around the industry mean (4.165). P/E Ratio (34.151) is within average values for comparable stocks, (49.157). AMZN's Projected Growth (PEG Ratio) (2.707) is very high in comparison to the industry average of (1.412). Dividend Yield (0.000) settles around the average of (0.092) among similar stocks. P/S Ratio (3.467) is also within normal values, averaging (6.547).
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General Information
a provider of on-line retail shopping services
Industry InternetRetail
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