Against the backdrop of rising uncertainty and high expenses attached to global supply chains, apparel brands’ real challenge now is to get their merchandise closer to the point of sale.
Amazon Inc’s t-shirt printing service currently seems to be the go-to solution for many of them. Entertainment companies like Walt Disney (DIS) and Dr. Seuss are increasingly turning to Amazon’s platform are following this strategy where instead of approaching traditional stores, they are working by on-demand printing T-shirts that do not warrant wide distribution. They can now list overnight on Amazon all the merchandise on sale and then post booking they are ready to make it and ship it. This completely cuts out that whole traditional supply chains cost.
The benefit is mutual, as Amazon also gets to become a major player in the clothing industry in the process. When garments are produced on-demand, it prevents the pile-up of unsold products allowing brands to sell more stock at full price.
This format is called ‘Merch’ by Amazon that rids brands and content creators of maintaining an up-front inventory.
This model has succeeded in bringing royalty revenue from sales of licensed merchandise and services globally to $14.5 billion last year, up 2.6% from 2017.
For example, Dr. Seuss helps Amazon with design, but Amazon sources the clothing and handles the sales and distribution. Dr. Seuss Enterprises has increased sales through ‘Merch’ by 40% since opening its store on the site around 18 months ago. The on-demand service also allows brands to give frequent design updates and offer secondary characters that may not be available in traditional stores.
Beyond the United States, Amazon has launched a ‘Merch’ printing facility in Poland in mid-2018 that serves the British and German markets.
AMZN moved below its 50-day moving average on April 19, 2024 date and that indicates a change from an upward trend to a downward trend. In of 52 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for AMZN moved out of overbought territory on April 12, 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 45 similar instances where the indicator moved out of overbought territory. In of the 45 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 April 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AMZN as a result. In of 80 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 April 16, 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 48 similar instances when the indicator turned negative. In of the 48 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 .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
AMZN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 289 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 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 92, 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 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 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: AMZN's P/B Ratio (9.132) is slightly higher than the industry average of (3.740). P/E Ratio (61.110) is within average values for comparable stocks, (59.414). Projected Growth (PEG Ratio) (2.208) is also within normal values, averaging (1.877). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (3.235) is also within normal values, averaging (10.312).
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 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