Think Amazon Stock Has Peaked? Here's 1 Chart That Every Investor Needs to See.
It's only been three months since the start of 2024 but shares of Amazon (NASDAQ: AMZN) are already up almost 20% year to date. And with this upward move, the stock now sits within a few bucks of its all-time high. This might be surprising for some. But for those who follow Amazon, this was totally predictable.
Since it went public nearly three decades ago, there's one financial metric that's predicted Amazon's stock price better than any other. Allow me to explain what this metric is and what it's predicting next for Amazon stock.
While revenue growth is exciting (and Amazon has it in spades), investors clearly pay close attention to the company's operating income. Companies have income and expenses that aren't considered core to the business -- taxes, interest income, and depreciation are a few noncore examples. But operating income only accounts for things that are core.
Source Fool.com
