Feb 9th 2023 Free Analysis - AMAZON

Hey MPA Investors!

Oh boy what a week. We’ve seen a lot of success with our analysis out of the box. I’ve gotten messages from some of you who were able to take advantage of it.  That’s so great to hear. We take our responsibility seriously to make sure we deliver the best simplified analysis we can. That said let’s jump right in:

THIS WEEKS' MOVERS SNAPSHOT

Amazon (Stock Ticker: AMAZON) -“You can get it on Amazon.” said everyone. Aka the company that has made us hate waiting more than 2 days to receive an online order. I don’t think this company needs too much of an intro so let’s get to why we like it.

Why AMAZON?

The global e-commerce market is projected to go from $4.921 Trillion in 2021 (these numbers are getting ridiculous 😂) to $7.3 trillion in 2025. Amazon makes up around 19.6% of global sales and is expected to hit 24.5% by 2025. Easy math right? Ok maybe not, but bottom line they’re expected to grow. A LOT! It’s important to remember that Amazon doesn’t only sell products. It’s an advertising platform too. You know those products at the top with the words “sponsored” next to them. They’re all paid ads. That’s in addition to the cloud computing services, digital streaming platform and of course some AI. Because who doesn’t have AI nowadays?

Why we feel there’s a buying opportunity:

1. They released their Q4 (sept-dec 2022) earnings a few days ago and beat expectations by 17th%.

2. Their stock price is considered undervalued by several of the largest investment organizations. Which means they believe the stock should be higher than it is. Most importantly, they believe it WILL go higher. Amazon is currently at $100.05 as of this e-mail and JP Morgan values them at $130. Citi Bank believes it should be $145. Morgan Stanely thinks $140. Bottom line, big banks think Amazon's value is higher than it's current price.

CURRENT PRICE (as of this email): $100.05

TERMS YOU NEED TO KNOW

Blue Chip -  A term that relates to high-quality, lower risk investments. It’s fitting because today’s stock is considered a blue chip stock. Along with companies like Facebook, Coca-Cola, McDonald's and Walmart. Basically well established companies that have performed well over a long period of time. 

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk.  Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation.  So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis.  We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.

We're listening!

Are you finding these e-mails useful? Write me back and let me know.

See you on Monday!Thibaud & PhilipFun fact about the stock market: The earliest book written about the stock market was Confusion of Confusions published in 1688.  What an appropriate title 😂.