After several months of beta testing, the e-commerce giant Amazon has finally decided to enter the $129 billion digital advertising market - presently dominated by Google and Facebook Inc. - by selling video spots on its smartphone shopping app.
The brief video spot on the shopping app seems to be quite a handy choice by Amazon, in comparison to scrolling through Facebook or watching videos on Google’s YouTube. It gives advertisers a valuable spot, since people searching for products on the app have a higher propensity to buy over the options provided by FB and Google.
Amazon had initially restrained itself from selling advertising space on its site for fear of disrupting the shopping experience, but selling video ads through its shopping app seems to work just fine for the company. It also helps the company add a new revenue stream for Amazon’s advertising division.
Amazon, over the last few years, has emerged as a fast-growing challenger in the digital advertising market, as it commands 50% of all online sales in the U.S. Slated to grow at 8.8% in 2019, up from 6.8% in 2018, Amazon is all set provide a stiff competition to the digital advertising market-leader Google – who could see its share slip to 37.2% from 38.2% in 2019, according to market estimates.
AMZN's Aroon Indicator triggered a bullish signal on November 25, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 306 similar instances where the Aroon Indicator showed a similar pattern. In of the 306 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where AMZN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 10-day RSI Indicator for AMZN moved out of overbought territory on November 14, 2024. 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 48 similar instances where the indicator moved out of overbought territory. In of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on November 20, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AMZN as a result. In of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on November 19, 2024. 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 47 similar instances when the indicator turned negative. In of the 47 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 .
AMZN broke above its upper Bollinger Band on November 05, 2024. 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 Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
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 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 (8.432) is normal, around the industry mean (4.151). P/E Ratio (44.421) is within average values for comparable stocks, (59.698). Projected Growth (PEG Ratio) (1.732) is also within normal values, averaging (3.109). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (3.580) is also within normal values, averaging (5.617).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of on-line retail shopping services
Industry InternetRetail