Dhan Manage

Tag: #Stock Market

  • Amazon Stock Performance: Is It Worth Buying in 2025?

    Amazon (AMZN) stock has had a strong year, overcoming a mid-year slump to post a gain of more than 45% in 2024. The stock rallied in the final months of the year, though it has seen slight pullbacks recently.

    The company’s growth has been fueled by optimism surrounding its massive e-commerce operations and Amazon Web Services (AWS), its cloud computing business. However, investors are keeping a close eye on competition in these areas, particularly with Microsoft (MSFT) in cloud-based artificial intelligence (AI) and challengers like Walmart (WMT) and Chinese newcomers Temu and Shein in e-commerce.

    Recent Stock Performance

    Amazon shares are currently trading near $223.10 after pulling back slightly from their December 16 record high of $233. Despite this, Amazon has gained 6% in December following an 11% increase in November.

    Amazon’s rally began in early November, supported by strong performance in the market after the U.S. presidential election and record-breaking sales during the Thanksgiving-to-Cyber Monday shopping period.

    The stock remains extended beyond its 5% buy range after breaking out from a $201.20 consolidation pattern, according to MarketSurge data.

    Key Metrics for Amazon Stock

    • Relative Strength Rating (RS): 88 (outperforming 88% of stocks in the market).
    • Composite Rating: 98 out of 99, reflecting a strong combination of earnings, sales, and price performance metrics.

    Amazon Q3 2024 Earnings

    Amazon reported robust third-quarter earnings on October 31, leading to a 6.2% stock rally.

    • Earnings per share: $1.43, a 52% increase year-over-year.
    • Revenue: $158.9 billion, up 11% year-over-year.

    While the company’s fourth-quarter sales forecast was slightly below expectations, its operating income exceeded analyst predictions, showing strong profitability.

    Analyst Expectations

    Wall Street analysts remain optimistic about Amazon’s future:

    • 95% of analysts rate Amazon as a “buy,” according to FactSet.
    • The average price target is $243.33, representing about 10% upside from its current price.
    • Bernstein analysts recently raised their price target to $265, naming Amazon their “top idea” for 2025.

    Analysts believe Amazon is successfully defending its e-commerce market share while reigniting growth in AWS after a slowdown in 2022.

    Key Trends for 2025

    Generative AI will be a major focus in 2025. Amazon is positioning itself alongside other tech giants like Microsoft, Google, and Nvidia in the race to capitalize on the growing demand for AI tools and infrastructure. AWS, in particular, is expected to play a critical role in the ongoing AI revolution.

    Amazon’s Market Cap and Long-Term Performance

    Amazon’s market capitalization stood at $2.33 trillion as of December 31. Here’s how Amazon’s stock has performed over time:

    Time PeriodAmazon Stock % GainS&P 500 % Gain
    Year-to-Date (2024)45.7%23.8%
    Past 12 Months45.7%23.8%
    Three Years30.8%23.2%
    Five Years136.7%82.3%
    Since 1997 IPO249,966.7%605%

    Bottom Line

    Amazon remains a leader in e-commerce, cloud computing, and the fast-growing AI space. While competition is intensifying, Wall Street analysts are bullish on the stock, expecting further gains in 2025.

    Investors considering Amazon should monitor its performance at key support levels and keep an eye on broader market trends. As always, assess your investment goals before making any decisions.

  • How SEBI Exposed Ketan Parekh

    The Securities and Exchange Board of India (SEBI) has displayed remarkable ingenuity in unmasking Ketan Parekh, a key player in a front-running scam, by uncovering the connections between him and various phone numbers used to mask his identity.

    Cracking the Code: SEBI’s Spy-Thriller Tactics

    In an interim order issued on January 2, SEBI’s Whole-time Member, Kamlesh Varshney, detailed how the regulator established Parekh’s identity despite his efforts to evade detection. Parekh, known for frequently changing his phone numbers, used multiple identities such as “Jack,” “John,” “Bhai,” and “Wellwisher” to give instructions to front-running entities (FRs). SEBI’s innovative investigation methods brought Parekh’s scheme to light.

    IMEI: The Key to the Puzzle

    One of SEBI’s breakthrough techniques involved tracking phone numbers linked to specific International Mobile Equipment Identity (IMEI) numbers. Parekh often changed his phone numbers but did not switch devices as frequently. This oversight proved to be his Achilles’ heel.

    For instance:

    • A number ending in 8243, which Parekh claimed belonged to his wife but was also used by him, was linked to an IMEI number shared with another number ending in 9917.
    • Similarly, a number ending in 2996, confirmed by Parekh and his associate Rohit Salgaocar as belonging to him, shared its IMEI with another number ending in 1068.

    Location Analysis: Mapping the Numbers to Parekh

    SEBI analyzed call-data records to identify the nighttime locations (9 PM to 6 AM) of these numbers. This investigation revealed that the numbers were frequently located at Parekh’s residence: Zaver Mahal, 19/b, Marine Drive, Marine Lines, Mumbai.

    Travel History Cross-Verification

    The regulator extended its analysis by matching the phone numbers’ locations with Parekh’s travel history. By collaborating with hotels and airlines, SEBI found that several numbers were present at the same hotels where Parekh stayed during specific periods. Hotel records confirmed his presence on those dates.

    Birthday Clue: A Chat that Unraveled the Mystery

    In one instance, SEBI found a WhatsApp chat where a front-runner, Sanjay Taparia, wished another contact—saved as “Jack Latest”—a happy birthday on February 15, 2023. “Jack Latest” responded with thanks. SEBI noted that February 15 is Parekh’s birthday, as per his PAN card, confirming that “Jack Latest” was indeed Ketan Parekh.

    The Evidence Speaks

    SEBI concluded that the numbers linked to Parekh were used to communicate instructions for executing trades based on non-public information (NPI). The regulator’s combination of tech-savvy investigations and traditional detective work exposed Parekh’s attempts to outsmart the system.

    SEBI’s relentless pursuit of truth underscores its commitment to maintaining market integrity. This case serves as a reminder that even the most elaborate schemes can unravel under the scrutiny of a determined regulator.