Question: Why Does Amazon Have A High Beta?

Amazon’s beta of 1.51 indicates share prices are positively correlated to the wider equity market and move up and down at a higher magnitude than the market.

Shareholders are therefore subject to increased market risk, as a wide-spread downturn disproportionately impacts high beta stocks such as Amazon.

What is Amazon’s beta?

The average beta (5 year) of the companies is 1.34 with a standard deviation of 0.59. Amazon.com, Inc.’ s Beta (5 Year) of 1.25 ranks in the 45.0% percentile for the sector.

Why is Amazon stock so high?

Amazon.com, Inc. (AMZN) stock is trading at an all-time high on Tuesday morning after the company announced that it will hire 75,000 workers to keep up with exploding demand triggered by the nationwide pandemic shutdown.

Why is Amazon a good investment?

Post says Amazon’s heavy investments in building up its fulfillment infrastructure have created several opportunities for the company in the years ahead. He says last-mile delivery capabilities should boost sales of underpenetrated categories such as beauty, personal care, pet care, food and other home goods.

What is the highest Amazon stock has ever been?

The company’s stock has reached the four-digit mark, hitting a new high of $2,185.10 per share on Feb. 19, 2020, during intraday trading.

What is Amazon’s PEG ratio?

Currently, Amazon.com has a PEG ratio of 3.83 compared to the Internet – Commerce industry’s PEG ratio of 1.55. The company’s trailing twelve month (TTM) PEG ratio is the P/E ratio divided by its growth rate over the past 12 months.

What is Amazon’s rate of return?

Amazon.com Forward Rate of Return (Yacktman) % Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Amazon.com’s forward rate of return for was 21.39%. During the past 13 years, Amazon.com’s highest Forward Rate of Return was 22.60.