Is Amazon (AMZN) Headed for a Breakdown? Inc. (AMZN) is a leading online retailer and one of the highest-grossing ecommerce aggregators. In addition to retail, offerings include Amazon Web Services’ cloud computing, storage, database, advertising services, and co-branded credit cards… Inc. (AMZN) has been gaining momentum in its Prime service due to fast delivery and a strong content portfolio. AMZN is also seeing growth in its online stores sales and solid adoption in AWS. Momentum in Amazon Music is also driving growth.

As of the most recent quarter, the company had a whopping $89.9 billion in cash, up from $73.3 billion the previous quarter. Its current ratio of 1.2 indicates it has more than enough liquidity to handle short-term obligations leading to a Quality Grade of B in our POWR Ratings system.

From a growth standpoint, earnings have grown an average of 67.3% per year over the past five years. Analysts forecast earnings to rise 26.4% this year. Its stock looks overvalued with a trailing P/E of 60.29. The stock has shown mixed performance over the past year as shown in the chart below.

Take a look at the 2-year chart of AMZN below with the added notations…

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