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AMAZON - AMZN AI Machine Learning Stock Investing

Companies / Amazon Jul 01, 2019 - 02:23 PM GMT

By: Nadeem_Walayat

Companies

Where to invest to profit from the exponential machine intelligence mega-trend. I have ranked these stocks in in terms of risk vs reward and volatility. Do remember that when investing in the stock market that your capital is at risk. There are NO SURE BETS!

If you've not already done so then watch my following video from November 2016 which illustrates why everything will start to change exponentially by 2021.


Machine Intelligence has become a broad church that has fragmented or branched off into a myriad of sectors and the number keeps expanding every year. Many years ago I broke the machine intelligence mega-trend down into 9 key sectors that I have now further fragmented into 10 by basically adding Cyber Security as the following list illustrates, the 10 key machine mega-trend sectors to invest in.

Machine Intelligence Investing Mega-trend

For a primer on how to invest in AI Stocks then see my following recent video:

How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend

Top 10 AI Stocks

The stocks are ranked in order of priority. Also to further break down the list, I consider the first 5 stocks as PRIMARY i.e. the most important. The next 3 as of SECONDARY importance and finally 2 far more risky TERTIARY stocks.

The stocks analysis is being published in reverse order (10 to 1) as this analysis has first been made available to Patrons who support my work: https://www.patreon.com/posts/top-10-ai-stocks-25779914

PRIMARY AI STOCKS

2. AMAZON - AMZN

What's Amazon got to do with AI? EVERYTHING! This monster online retailer that began as a online book store is now responsible for putting high streets and shopping malls out of business right across the western world, and given it's approach towards full spectrum dominance of online sales and expansion into digital media it's definitely got an insatiable appetite towards developing its consumer knowledge based AI systems, targeting consumers with products they want to buy in it's ever expanding inventory of goods and services such as its Alexa voice service.

Whilst on the back end Amazon is increasingly automating it's business, warehouse full of AI controlled robots, picking and packing orders to be shipped ultimately by drones, all geared towards driving down costs. But Amazons going beyond it's online store business branching into servers and cloud based AI computing services such as Amazon Lex, Amazon Polly and Amazon Rekognition.

Amazon Financials

Current Price $1781  
Market Cap $871bn  
Enterprise Value $882bn  
Total Cash $41.5bn  
Net Income $10bn  
P/E Ratio 88.46  
Forward P/E 44.56  
Dividend Yield Nill  
Sales Growth 30.9%  
Price to Sales Ratio (lower better) 3.22  
Price to Cash Flow Ratio (lower better) 16.93  
PEG Ratio (lower better) 1.47  
Debt to Equity (lower better) 113.18  
Stock Price 3 Year Change 187%  
Ratio to S&P 490%  

 

Amazons financials are robust, notably strong sales growth. High P/E not as important as it may first appear as illustrated by forward P/E. Though debt ratio looks a bit high. Plenty of cash.

Trend - Amazon launched itself into space during 2018! Those who invested several years ago are sitting on a tidy return. However, since the August 2018 peak Amazon has been under performing, and is far more very volatile than the likes of Googie, Basically expect a roller coaster ride when investing in Amazon. In terms of deviation from the S&P, well it does tend to do its own thing. So perhaps keep a closer eye or a smaller position is in order.

Long-term Investing - VERY Strong Long-term returns (187% of S&P).

Conclusion - Amazon is definitely a stock to accumulate to leverage the machine intelligence mega-trend , Whilst volatility is high, however that shouldn't really matter in terms of the very long-term.

Again this the whole of this analysis has first been made available to Patrons who support my work: https://www.patreon.com/posts/top-10-ai-stocks-25779914

So for immediate First Access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

Scheduled Analysis :

  • Machine Intelligence Investing - Life Extension Strategies and sub sector stocks analysis
  • Stock Market Trend Forecast Update
  • China Stock Market SSEC
  • Bitcoin update
  • UK Housing market series

Recent Analysis:

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Your analyst

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2019 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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