Bank stocks remain a buy amid uncertainty prevailing Nigeria’s economy

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The world’s most valuable online retail company, Amazon, is worth a whopping $1.5 trillion – this valuation is bigger than Africa’s top ten banks capitalization value combined.

Still, the Nasdaq traded stock is red hot relatively, taking into account the stock is up 77% YTD, and the company recently announced the launch of an online pharmacy, meaning it has ventured into a juicy ecosystem that considerably offers better margins when compared to generic goods like wears, toys.

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Such a move signals an overnight paradigm shift for the online retail ecosystem, amid fears from its rivals that the online retail juggernaut has a massive amount of cash to push forward such a project.

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A recent report from Deloitte research anticipates e-commerce sales will climb between 25% and 35% year over year during the holiday shopping season.

READ: Bank chiefs make a serious demand following CBN deduction of N499 billion 

Global investors have relatively increased their buying pressure on the Stock, on the bias that the outlook for global e-commerce is much brighter amid the COVID-19 pandemic, forcing more individuals globally to shop online.


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Its latest earning results show its fundamentals remain upbeat;

  • Operating cash flow increased 56% to $55.3 billion for the trailing twelve months, compared with $35.3 billion for the trailing twelve months ended September 30, 2019.
  • Free cash flow increased to $29.5 billion for the trailing twelve months, compared with $23.5 billion for the trailing twelve months ended September 30, 2019.
  • Net sales increased by 37% to $96.1 billion in the third quarter, compared with $70.0 billion in third-quarter 2019.

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  • Excluding the $691 million favorable impacts from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 36% compared with third-quarter 2019.
  • Operating income increased to $6.2 billion in the third quarter, compared with operating income of $3.2 billion in third-quarter 2019.
  • Net income increased to $6.3 billion in the third quarter, or $12.37 per diluted share, compared with net income of $2.1 billion, or $4.23 per diluted share, in the third quarter of 2019.

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It’s not surprising its founder Jeff Bezos is reportedly worth $183 billion, according to the Bloomberg Billionaires Index.

Although, since the amazing online retail stock hit $3,550 per share in early September, it dropped about 12.7% from the peak, as it presently trades around $3,099.

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READ: MTN Nigeria records 16.6% increase in revenue in Q3 2020

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Bottom Line

Nairametrics anticipates its cloud investments will pay off in the mid-term, taking into consideration it’s the world-leading market shareholder in cloud computing, coupled with the fact it offers the company incredibly high-profit margins and not forgetting the pending holiday season coming to play.

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