Amazon.com Inc.

Amazon.com Inc. (AMZN - Analyst Report) just hit another 52-week high ahead of the holidays and on the heels of the strong Q3 results from late October and rising estimates.

Compamy Description

Amazon.com, Inc. operates as an online retailer worldwide. The company was founded in 1994 and has a market cap of $59 billion.

Third-Quarter Results

Shares of AMZN gapped higher on Oct 23 after the company reported better than expected third-quarter results. Revenue was up 28% from last year to $5.45 billion. Earnings came in strong at 45 cents, 12 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last four quarters by an average of 9 cents, or 27%.

Amazon noted that revenue from its books, CDs and DVDs segment was up 17% to $2.93 billion while its electronics and general merchandise was up 44% to $2.36 billion. North American sales were up 23% while global sales were up 33%.

Estimates

Estimates jumped higher after the good quarter, with the current year adding 20 cents and moving to $1.88 per share. The next-year estimate is pegged at $2.54, a 36% growth projection.

Valuation

Based on the current-year estimate, shares trade with a P/E multiple of 72X, a major premium to the overall market.

The Chart

Shares of AMZN recently hit a new 52-week and all-time at $145.91. A short-term trend line that began after the good quarter should provide support if shares pull back. Take a look below.

Read the full analyst report on AMZN