Amazon Stock Price Prediction: Where Will It Be in 1 Year
Analyst expectations for where Amazon stock is headed vary somewhat. However, Wall Street remains optimistic overall, especially in the short term. The post Amazon Stock Price Prediction: Where Will It Be in 1 Year appeared first on 24/7 Wall St..
It is clear that Amazon.com Inc. (NASDAQ: AMZN) has been one of the best long-term stocks in the history of the stock market. These days, the company is a colossal retail, cloud computing, artificial intelligence (AI), consumer electronics, media, and advertising conglomerate.
24/7 Wall St. Key Points:
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Analyst expectations for where Amazon.com Inc. (NASDAQ: AMZN) stock is headed vary somewhat.
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Despite some skeptics, Wall Street remains optimistic overall, especially in the short term.
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While there can be little doubt about its current financial health, shareholders and would-be investors may be right to wonder whether growth can continue and whether the stock is safe. Let’s take a look at where the share price could be headed.
Why Invest in Amazon?
In the past 20 years, Amazon stock is up about 13,400%. The company has been called one of the most influential economic and cultural forces in the world, and its brand is one of the world’s most valuable. Though the stock tumbled as the COVID-19 pandemic waned and lockdowns ended (along with the broader markets), it has more than recovered.
Shares of this Magnificent 7 member recently hit an all-time high. It is hard to imagine that the company or its share price will collapse any time soon, but analysts and investors may see the stock as overbought. Let’s see what Wall Street expects.
Amazon, the Company
The company engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores internationally. It also manufactures and sells electronic devices and develops and produces media content. Amazon Web Services (AWS) provides compute, storage, database, analytics, machine learning, and other services. And Amazon Prime is the company’s membership program.
Amazon is based in Seattle. It was founded in 1994 by Jeff Bezos, the former chief executive officer and now executive board chair. Amazon went public in May of 1997. Its retail competitors include Alibaba Group Holding Ltd. (NYSE: BABA), Kroger Co. (NYSE: KR), and Walmart Inc. (NYSE: WMT). It also competes with the likes of Netflix Inc. (NASDAQ: NFLX) and Microsoft Corp. (NASDAQ: MSFT).
The company continues its push into artificial intelligence with an update of its Alexa feature to Alexa+. AWS investments in cloud computing and AI also continue. In addition, Amazon has been expanding its same-day delivery services, and its entertainment division has secured the James Bond franchise with the acquisition of MGM Studios. Headwinds include ongoing labor issues. The most recent quarterly results showed strong performance, with AWS as a major growth driver.
Amazon, the Stock
The share price is about 20% higher than a year ago, much of that gain coming in the third quarter. The Nasdaq is up less than 16% year over year. Note that the $266.52 consensus price target is greater than the all-time high share price seen earlier this month.
Out of 69 analysts who cover the stock, all but four recommend buying shares, 18 of them with Strong Buy ratings. Loop Capital and Wells Fargo recently reiterated Buy-equivalent ratings. More than 65% of shares are held by institutional investors, including notable stakes at Vanguard, BlackRock, and State Street. Note that CEO Andrew Jassy recently parted with more than $4.5 million worth of shares, and some other executives have been selling shares as well.
Wall Street expectations for where the stock goes in the next 52 weeks vary. While analysts overall anticipate healthy upside, the lowest price target indicates a decline in the share price. The consensus projection signals strong upside potential for the next 52 weeks.
| Low target | $203.00 | −2.6% |
| Mean target | $266.52 | 27.9% |
| High target | $306.00 | 46.9% |
Amazon does face some headwinds and risks in addition to those mentioned above. Consumers appear to be pulling back on spending due to ongoing inflation and a possible recession. Increasing costs of AI investment could have customers reducing spending as well. And while the company dominates in the retail space and is a tech leader, competition in neither category is likely to go away anytime soon. All these things could have a huge impact on profitability.
Despite some skeptics, the prospects are optimistic overall, especially in the short term. The strong consensus Buy recommendation and the upside potential far outweighing the downside potential confirm this.
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The post Amazon Stock Price Prediction: Where Will It Be in 1 Year appeared first on 24/7 Wall St..
