Is Amazon stock a buy right now?
The highest analyst price target is $230.00 ,the lowest forecast is $198.00. The average price target represents 15.76% Increase from the current price of $183.32. Amazon's analyst rating consensus is a Strong Buy. This is based on the ratings of 41 Wall Streets Analysts.
Amazon currently has an average brokerage recommendation (ABR) of 1.11, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 46 brokerage firms. An ABR of 1.11 approximates between Strong Buy and Buy.
Its five-year Amazon share price forecast expects the stock to decline to $153.56 by April 2029. Meanwhile, another algorithm-based prediction platform, GovCapital, expressed the most bullish 1-year Amazon stock forecast, setting the AMZN target price at $303.76 for April 19, 2025.
Key Points
Amazon's annual revenue and operating income have more than doubled over the last five years. The company will likely profit from the tailwinds of e-commerce and the cloud market for years. Earnings per share estimates indicate a 66% upside for Amazon's shares over the next two years.
Earnings are expected to grow 39% year-over-year for the current fiscal year, with sales growth of 11.5%. 15 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.43 to $4.03 per share. AMZN boasts an average earnings surprise of 51%.
According to data compiled by TipRanks on 24 March 2023, the consensus analyst forecast for Amazon stock price was bullish. A total of 37 out of 38 analysts rated the stock as a buy, while one gave it a hold rating. The consensus AMZN stock forecast for the next 12 months stood at $136.86 a share.
Wall Street analysts expect Amazon stock to keep gaining. Of the 63 Amazon stock analysts following the company, 95% hold a buy rating, according to FactSet. Further, FactSet data shows those analysts have, on average, set a 12-month price target of 211 for Amazon stock, according to FactSet.
Amazon's (NASDAQ:AMZN) venture into generative AI has reshaped its e-commerce business focus. By infusing AI across its platform and AWS, Amazon elevates its offerings. Amazon Bedrock, integrating top AI models, enriches developer capabilities.
Average Price Target
Based on 41 Wall Street analysts offering 12 month price targets for Amazon in the last 3 months. The average price target is $212.21 with a high forecast of $230.00 and a low forecast of $198.00. The average price target represents a 15.15% change from the last price of $184.29.
Amazon has a mean target price of $202.49, which is 12% higher than yesterday's closing prices. Its Street-high target price of $230 implies an upside of 27.2% over the next 12 months. Analysts are overwhelmingly bullish on Amazon, and multiple brokerages listed it as a top pick for 2024.
What are the cons of buying Amazon stock?
But, with such great size, comes a set of unique risks. The biggest risks of investing in Amazon.com, Inc. (NASDAQ: AMZN) stock are increasing competition, profit potential uncertainty, revenue growth uncertainty, speculative valuation and share price volatility.
Amazon's success has seen its financials flourish, with its annual revenue, operating income, and free cash flow soaring over the past five years. Meanwhile, its market capitalization hit $1.9 trillion in 2024, making it the world's sixth-most-valuable company and comparable to tech giants Alphabet, Nvidia, and Apple.
With that cash, Amazon can pay down debt, repurchase shares, or fund dividends. Those actions benefit shareholders and are the primary reasons for investing in Amazon's stock. Despite Amaozn's strength since the start of 2023 and so far in 2024, it's still a great buy right now.
Those gains translate to a 23.2% compound annual growth rate for Amazon compared to a 6.2% CAGR for the S&P 500 in that time. As a result, $10,000 in AMZN stock purchased 20 years ago would now be worth $645,262.
As a result, those who bought $10,000 worth of Amazon's stock in January 2013 would have $78,138.51 today, with an annual rate of return of 22.42%. The growth proves the importance of holding stocks over the long term, as doing so can safeguard your investment against short-term headwinds.
If you had invested $1,000 during Amazon's IPO in May 1997, your investment would be worth $1,341,000 as of August 31, according to CNBC calculations. That's better than the so-called FAANG stocks, plus Ebay – which debuted in that same period.
Jeffrey Bezos owns the most shares of Amazon (AMZN). The ownership structure can impact the company's decision making, as large institutional investors may exert influence on the company's management and can also affect the company's stock price with their buying and selling patterns.
Fractional Shares: Many brokerage platforms allow you to purchase fractional shares, enabling you to invest in companies like Amazon with as little as $1. This means your $100 can buy you a fraction of an Amazon share.
Future Outlook for Amazon Stock
It took seven and a half years for Amazon to reach $1,000 from $100 and it's very possible that it could hit $10,000 between 2023 and 2025. Amazon's potential to grow could continue over time.
The 46 analysts with 12-month price forecasts for Amazon stock have an average target of 189.85, with a low estimate of 123 and a high estimate of 235. The average target predicts an increase of 4.73% from the current stock price of 181.28.
What is the fair value of Amazon stock?
As of 2024-04-10, the Fair Value of Amazon.com Inc (AMZN) is 73.23 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 185.95 USD, the upside of Amazon.com Inc is -60.6%.
Founder and former CEO Jeff Bezos is the largest Amazon shareholder, with more than 937 million shares, which represent a stake of about 9% in the company. Bezos' shares are worth an estimated $166 billion.
Unlike many companies that provide dividends to investors, Amazon does not offer dividends. While this may make it less appealing to income-focused investors, those prioritizing long-term growth may find Amazon's profit distribution approach and growth strategies advantageous.
Is Apple stock a Buy, Sell or Hold? Apple stock has received a consensus rating of buy. The average rating score is Aaa and is based on 67 buy ratings, 30 hold ratings, and 2 sell ratings.
The stock has done well so far in 2024. Amazon (AMZN -0.16%) has had a great first quarter of the year, with the stock rising around 20%. But I think that's just the beginning. Amazon has a lot going for it, making it a great buy even after its recent run.
