NEW YORK (TheStreet) --Amazon.com (AMZN) - Get Report stock is getting a lift, up 0.23% to $674.83 on Monday, after the e-commerce giant on Sunday released a new video on Alphabet (GOOGL)-owned YouTube showing its latest Prime Air delivery drone.
Speedy delivery is one way the retailer is planning to attract consumers as competition in the retail industry heats up.
The new prototype drone aims to deliver packages within 30 minutes. The video gives viewers a look at its latest design. After an order is placed, the delivery drone can rise vertically to 400 feet and then travel horizontally for up to 15 miles until it reaches its destination.
Additionally, the company is extending its Cyber Monday deals for an additional eight days this year to December 5.
The National Retail Federation noted that U.S. holiday shopping is on track for a 3.7% increase this year, helped by online sales.
Separately, TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AMZN's revenue growth trails the industry average of 37.9%. Since the same quarter one year prior, revenues rose by 23.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- AMAZON.COM INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMAZON.COM INC swung to a loss, reporting -$0.54 versus $0.58 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus -$0.54).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet & Catalog Retail industry and the overall market on the basis of return on equity, AMAZON.COM INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- Powered by its strong earnings growth of 117.89% and other important driving factors, this stock has surged by 101.56% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- You can view the full analysis from the report here: AMZN