Amazon (AMZN, $1,847.33) & Microsoft (MSFT, $120.19) are reportedly finalists for $10 billion Pentagon contact for cloud
Amazon and Microsoft are reportedly the remaining companies in running for the Pentagon contract to bring in cloud services.
According to various reports, IBM and Oracle were reportedly ruled out for a U.S. Defense Department contract for cloud computing services. The contract, reportedly worth as much as $10 billion over the course of a decade, now has Amazon and Microsoft vying for it – according to a New York Times article citing a Pentagon spokesperson. The winner will be announced as soon as July 2019, the New York Times said.
Amazon’s cloud business, called Amazon Web Services (AWS), seems to be emerging as a major growth driver for the company. Revenue from the unit exceeded $7.4 billion in the fourth quarter.
Microsoft, on the other hand, does not disclose figures separately for its Azure cloud segment; but Morgan Stanley analysts led by Keith Weiss estimated that Azure generated more than $3 billion in revenue for Microsoft in the fourth quarter as mentioned in the analysts’ note to clients earlier this month.
The Defense Department hasn't released any statement regarding the matter on its website as yet. None of the aforementioned companies have issued any official statement either.
AMZN's Indicator enters downward trend
The Aroon Indicator for AMZN entered a downward trend on January 21, 2025. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 158 similar instances where the Aroon Indicator formed such a pattern. In of the 158 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
AMZN broke above its upper Bollinger Band on January 21, 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.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 15, 2025. You may want to consider a long position or call options on AMZN as a result. In of 76 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AMZN just turned positive on January 22, 2025. Looking at past instances where AMZN's MACD turned positive, the stock continued to rise in of 49 cases over the following month. 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 342 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 89, 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 (9.823) is normal, around the industry mean (4.747). P/E Ratio (51.722) is within average values for comparable stocks, (62.694). Projected Growth (PEG Ratio) (1.989) is also within normal values, averaging (2.851). Dividend Yield (0.000) settles around the average of (0.025) among similar stocks. P/S Ratio (4.170) is also within normal values, averaging (5.619).
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General Information
a provider of on-line retail shopping services
Industry InternetRetail