Should I buy, sell or hold Amazon.com, Inc.?

Amazon.com, Inc. has demonstrated notable operational metrics, highlighting its management efficiency with a return on equity (ROE) of 15.52%. The company maintains a low debt-to-equity ratio, indicating a conservative approach to leverage. Over the past year, Amazon has achieved a robust annual growth rate in net sales of 17.03% and operating profit growth of 38.21%. Additionally, the company has reported positive results for seven consecutive quarters, with operating cash flow reaching a high of USD 113,903 million and a significant net profit of USD 36,865.76 million, which has grown at a rate of 61.54%. The return on capital employed (ROCE) also stands at a high of 25.24%.
However, there are considerations regarding valuation. The company’s ROE of 21.4 suggests a premium valuation, with a price-to-book ratio of 7.5, which is higher than the average historical valuations of its peers. Despite the stock generating a return of 0.00% over the past year, profits have risen substantially by 69.7%, resulting in a PEG ratio of 0.5.

In light of these factors, Amazon.com, Inc. has seen an adjustment in its evaluation, reflecting the complexities of its financial performance and market positioning.