Will new restrictions prevent Amazon (AMZN, $1,658.81) from flourishing in India?
Last December, the Indian government published a circular that prohibits Amazon and Flipkart from selling a companies' products if they have an equity stake in the company. This restriction may affect Amazon’s business in India, which is one of world’s fastest growing economies. Amazon's e-commerce presence in the country is at a nascent stage, and the region has huge growth potential.
According to global consultancy firm PWC, India's e-commerce market is expected to cross the $100 billion mark by 2022, with online retail and travel holding more than a 90% share.
Amazon has already invested roughly $5 billion in the market and plans to pour in an additional $2 billion into its Indian wing. It has also acquired stake in India’s offline space, with the acquisition of equity stakes in retail chains like More and Shoppers Stop.
In the short term, the new law has some impact on all online retailers as uncertainty over scope and enforcement looms.
However, analysts predict the restrictions won't have any ‘earth shattering’ effects on the company in the long run, as Amazon is expected to come up with an alternative business model. With the amount of foreign investments online players like Amazon and Walmart (WMT) bring in the sector, the Indian government is expected to relax some of the regulations with time.
Momentum Indicator for AMZN turns positive, indicating new upward trend
AMZN saw its Momentum Indicator move above the 0 level on June 26, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned positive. In of the 79 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for AMZN just turned positive on June 27, 2025. Looking at past instances where AMZN's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
The 50-day moving average for AMZN moved above the 200-day moving average on July 08, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 319 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 286 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AMZN moved out of overbought territory on June 30, 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 demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 June 27, 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 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 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 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 (7.716) is normal, around the industry mean (4.266). P/E Ratio (36.199) is within average values for comparable stocks, (50.627). AMZN's Projected Growth (PEG Ratio) (2.889) is very high in comparison to the industry average of (1.427). Dividend Yield (0.000) settles around the average of (0.099) among similar stocks. P/S Ratio (3.675) is also within normal values, averaging (6.652).
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General Information
a provider of on-line retail shopping services
Industry InternetRetail
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