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RICHMOND, CALIFORNIA - JUNE 21: The Amazon Prime logo is displayed on the side of an Amazon delivery truck on June 21, 2023 in Richmond, California. The Federal Trade Commission (FTC) sued Amazon alleging that company has deceived millions of customers into signing up for Prime subscription services and intentionally complicated the cancellation process. (Photo by Justin Sullivan/Getty Images) Getty Images With Amazon.com increasing by 9.6% in a single day, it’s a good time to reassess it in comparison to its competitors. Regularly evaluating alternatives is fundamental to a solid investment strategy. Here’s how Amazon.com (AMZN) stock compares to its rivals in terms of size, valuation, growth, and margin. AMZN’s operating margin of 11.4% is robust, albeit lower than most competitors, lagging behind MSFT (46.3%). AMZN’s revenue growth of 10.9% over the last 12 months is solid, surpassing AAPL, WMT, BABA, and W, but trailing MSFT. AMZN’s stock rose by 31.0% over the past year and is trading at a PE ratio of 36.8, though competitors like BABA and W have delivered better returns. As a brief overview, Amazon.com offers retail sales of consumer products and subscriptions worldwide, provides cloud services, and manufactures electronic devices such as Kindles, Fire tablets, Fire TVs, Rings, and Echo. Investing in a single stock can be risky; however, there is significant value in a broader, diversified approach that we pursue with the Trefis High Quality Portfolio. We extend our focus beyond equities. Will a portfolio consisting of 10% commodities, 10% gold, and 2% crypto alongside equities and bonds yield better returns over the next 1-3 years and provide better protection in the event of a 20% market crash? We've analyzed the data. Why does this matter? AMZN has recently increased by 9.8% in a month – comparing it to peers contextualizes stock performance, valuation, and financial health – highlighting whether it is genuinely outpacing the competition or falling behind, and most importantly – can this trend persist? Read Buy or Sell AMZN Stock to determine if Amazon.com remains a solid investment. Moreover, there is always a risk of a downturn following a significant uptick – explore how the stock has fluctuated and bounced back historically through the AMZN Dip Buyer Analysis perspective. MORE FOR YOU Revenue Growth Comparison Revenue Comparison Operating Margin Comparison Operating Margin Comparison PE Ratio Comparison PE Ratio Comparison While comparing peers is essential, the Trefis High Quality (HQ) Portfolio, encompassing 30 stocks, has a history of consistently exceeding its benchmark, which comprises all three indices — the S&P 500, S&P mid-cap, and Russell 2000. What’s the reason behind this? As a group, HQ Portfolio stocks have delivered superior returns with reduced risk compared to the benchmark index; they offer a smoother investment experience, as demonstrated in the HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
