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.
Aroon Indicator for AMZN shows an upward move is likely
AMZN's Aroon Indicator triggered a bullish signal on December 26, 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 309 similar instances where the Aroon Indicator showed a similar pattern. In of the 309 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
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 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on January 07, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on AMZN as a result. In of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 .
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 (9.166) is normal, around the industry mean (4.605). P/E Ratio (48.278) is within average values for comparable stocks, (60.338). Projected Growth (PEG Ratio) (1.852) is also within normal values, averaging (2.683). Dividend Yield (0.000) settles around the average of (0.027) among similar stocks. P/S Ratio (3.893) is also within normal values, averaging (5.577).
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a provider of on-line retail shopping services
Industry InternetRetail