AMZN Stock Price Target – Why Investors Are Still Confident in Amazon (AMZN)
Despite the stock price of Amazon falling to an all time low recently, investors
continue to have confidence in the company, and believe that the stock price is likely to rise. In fact, the company’s stock price targets indicate that the market believes that the company’s stock price could rise as much as 30% by the end of this year.
Amazon's EPS forecast for 2024
Despite Amazon’s EPS forecast for 2024 being somewhat pessimistic, the company has a strong long-term outlook. The company is a dominant force in the global e-commerce business and is also benefiting from the secular shift towards cloud growth.
Amazon’s cloud computing business is one of the world’s best growth businesses. It is responsible for a large portion of Amazon’s operating income. The company will benefit from a rapid increase in the worldwide cloud service market. This should drive a boost in Amazon’s operating performance.
Amazon is expected to generate 30 percent annual EPS growth over the next three to five years. The company’s ad business is also expected to be a bright spot. The company’s ad sales were up 18 percent in the latest quarter.
In addition to its e-commerce operations, Amazon also has a retail segment that offers strong margins. The company plans to invest in more advertising. It also expects to add more employees. Amazon also has plans to expand in new areas. Amazon stock trades at a relatively cheap price after losing 40% of its value in 2022. The company is still valued at about 30 times its earnings per share. It is one of the best-priced names in the market. However, it may be susceptible to short-term pressures. Amazon has also been subject to heavy regulatory scrutiny, and it faces a slowing economy.
Amazon is expected to generate 11% revenue growth in 2022. The company will see an increase in its operating profit margin by about 100 basis points. The company is also expected to spend less money on buybacks.
Amazon’s EPS for 2024 is expected to be $3.61, and the company is also expected to generate a positive $1 billion to $3 billion in net income. Amazon’s stock price is forecasted to rise from $4,315 to $4,910 by 2024. The stock has a market cap of over $710 billion.
Amazon is one of the best values in the stock market. The company’s ad business and its retail segment offer long-term growth. However, the company’s e-commerce operations have fallen short of investors’ expectations. Its management continues to worry about the possibility of an economic slowdown.
Jeff Bezos' net worth stands at roughly $179 billion
Currently, Jeff Bezos is the richest man in the world. He has a net worth of around $179 billion. It’s estimated that his fortune will increase by a total of $78 billion in the next 12 months, meaning that he will be worth $210 billion in one year’s time. Jeff Bezos’ wealth comes from his shares of Amazon. He currently owns a 10 percent stake in the e-commerce company. He also owns a media company, The Washington Post, and a space exploration company, Blue Origin. Jeff Bezos has pledged to donate $10 billion in the next 10 years to combat climate change. The Bezos Earth Fund will focus on reducing carbon emissions from construction materials, and promoting natural carbon sinks.
Amazon began as an online bookstore, and expanded to cloud computing and video streaming. It also provides virtual assistants, like Alexa. The company has been expanding into the grocery world. In 2017, it bought Whole Foods for $13.7 billion. This was the largest acquisition in the company’s history.
Jeff Bezos is also one of the biggest land owners in the United States. He owns several expensive homes, including a three-story penthouse in Manhattan, and a 5.3-acre property in Medina, Washington. He also owns a $65 million Gulfstream G650ER private jet. He recently purchased a $165 million mansion in Beverly Hills. He’s also one of the richest people in the world, ranking fourth on Forbes’ Billionaires Index. Jeff Bezos’ fortune has soared during the coronavirus pandemic, which has fueled the growth of e-commerce. However, he’s also seen his wealth plummet during that time, and he’s lost approximately $391 million a day. He was originally worth $214 billion in the pandemic, but his fortune dropped by roughly 90 percent. In December 2019, Jeff Bezos threw a star-studded birthday party for his girlfriend, Lauren Sanchez. He also reportedly purchased three adjacent apartments in Manhattan. He’s also got a taste for luxury cuisine.
In 2021, British Prime Minister Boris Johnson met with Jeff Bezos at the United Nations General Assembly. He also led an expedition to recover the Apollo 12 rocket engine.
Taking a closer look at the AMZN stock price target, you will find that it is actually quite modest. The average price target for Amazon is $175, which is 75% higher than the stock’s current closing price of $82. This is a sign that investors are still taking the stock seriously.
It is difficult to ignore the fact that Amazon stock has been remarkably consistent in terms of growth over the last five years. This is a testament to the company’s defensible economic moat. It’s likely that the company will continue to invest hard to boost its profitability. Amazon’s operating profit margin is expected to increase to 4.2% in 2023, compared to 2.4% this year. This is a significant improvement, and will help the company to expand its operating profit margin significantly over the next 12 months.
The price/sales ratio is an important metric to measure a company’s value. This is especially true for growth stocks. It’s a good idea to compare P/S ratios of similar companies, as there is often a significant difference.
The PEG, or price/earnings ratio, is a more technical measure of a company’s growth rate. This is more reliable, given that it is based on a company’s projected growth rate over a period of time. The PEG is a great indicator of how much more lucrative a company is compared to its peers.
The P/E is a good indicator of how much investors are willing to pay for a company’s earnings. It’s also a measure of the market value of the company’s common equity. If the company has a substantial amount of debt on its balance sheet, the P/E won’t tell you much. It may be better to look at the company’s total Firm Value, which may be less than the amount of debt on its balance sheet.
Taking a closer look at the P/E, you will find that it is not particularly high. However, its P/E is more than its predecessor, the S&P 500. This is because the S&P 500’s forward P/E is 20.7, which is a good deal lower than Amazon’s forward P/E of 45.
Technicals still backing the bullish line
Despite the recent decline in Amazon (AMZN) stock, technicals are still backing the bullish line on the stock price target. The chart below shows that the price has been consolidating in a double inside bar pattern for the past two days. This pattern indicates that a continuation of the trend is possible.
The Amazon stock price has fallen about 47% year-to-date as of 7 November. However, the average price target is still 75% above the current closing price. This means that the average investor is still able to earn a decent return on Amazon stock.
The average price target for Amazon is $175. Some investors may choose to buy the stock at a discount. But if you want to earn long-term growth, it is important to keep your investment in the market.
The e-commerce industry is expected to grow from $905 billion in 2022 to $1.7 trillion in 2027. Amazon is one of the leading companies in this space. The company has a powerful moat and a proven track record for long-term growth.
Analysts expect Amazon to generate around $613 million in sales next year. This forecast is 15% higher than what the company actually produces. However, Amazon is also facing surging inflation and complicated supply chain dynamics. In addition, the company has faced problems with its employees. They are regularly on strike and subject to harsh working conditions.
Amazon is also facing the possibility of a recession in the United States. The Fed is tightening its monetary policy and markets are digesting the uncertainty in China. These factors are contributing to the decline in the stock price.
Investors should expect volatility in January. The stock is forecasted to fluctuate in a range of 2,870 to 3,540 USD for the rest of the year. The level of 3,540 USD will serve as the resistance level. If the resistance level is crossed, it is expected that growth will continue.
The recent decline in Amazon stock is a big buying opportunity. But traders need to keep in mind that the market is still in a correction.