Amazon stock forecast | Amazon stock future
If you are taking the opportunity to invest in the retail giant Amazon seriously, here are now the Amazon stock predictions and what it can achieve in the coming years.
US retail giant Amazon (AMZN) share price surged more than 14% after the market closed on Thursday, February 8 at more than $3,200, following the release of the company's fourth-quarter 2021 earnings report. Amazon has nearly doubled its net income this quarter Finally, the company leveraged its investment in electric vehicle maker Rivian (RIVN) with its public listing, which took place in November, and delivered solid growth in its advertising business.
Amazon has outperformed in recent times
Amazon reported net sales of $137.4 billion in the fourth quarter of 2021, up 9% from net income generated in the same period in 2020 of $125.6 billion. The company's net income jumped from $7.2 billion, or $14.09 per diluted share, in the fourth quarter of 2020 to $14.3 billion, or $27.75 per diluted share, in the fourth quarter of 2021. This included $11.8 billion of Amazon's investment in Rivian Automotive, which completed its initial public offering (IPO) in November 2021.
For the full year, net sales rose 22% to $469.8 billion from $386.1 billion. Included
Amazon's stock price is up 2.28% in 2021, ending the year at $3,334.34 a share after hitting an all-time high above $3,700 a share in July.
Some of the drivers for this positive impact of $3.8 billion are from annual changes in foreign exchange rates. In addition to this, Amazon's operating income increased to $24.9 billion from $22.9 billion in 2020.
amazon stock forecast
At the time of writing, Amazon stock forecasts from 33 Wall Street analysts had a 12-month average price of $4,198.82 per share, according to MarketBeat. This indicates that there is a possibility that the stock will rise to new highs. With an expected lowest price of $3,600 per share, and an estimated maximum price of $5,000 per share. All 33 analysts issued buy ratings for the stock, with no recommendations to sell.
On January 3rd, investment firm Robert W. Bird issued a positive outlook for Amazon stock with a superior rating, with a price target of $4,000 per share. On January 11, Morgan Stanley raised its price target forecast from $4,000 per share to $4,200 per share with a very good rating. On January 27, BMO Capital Markets lowered its price target from $4,100 per share to $3,600 per share, but on February 4, Credit Suisse raised Amazon's price target from $4,100 per share to $4,100 per share.
On January 31, analysts at Jefferies wrote before earnings results were released that they expected operating income to come in below consensus estimates rather than above it, but they viewed the stock as a success story in the second half of 2022 buoyed by share dilution and improvement Seeing Cost and Moderation in Building Capacity and Gaining Continuous Momentum in High Margin Business (AWS/Adv).
Jefferies added that Amazon's valuation of AMZN looks attractive in the wake of recent poor performance: The stock is down 14% since the start of the year and 15% since its third-quarter earnings were announced. Forecasts have fallen over the past six months in two consecutive indices, with the assessment falling 15% below the average of the past five years.
Jefferies has a price target of $4000 per share with a bearish scenario of $3000 per share and a bullish scenario of $4500 per share.
AMZN across its entire ecosystem is benefiting from the behavioral changes caused by the COVID-19 outbreak. Market leadership in fulfillment and cloud computing drives revenue growth and margin improvement in a way that helps Amazon maintain market share by making it easier for its customers to shop (better choices, product availability, convenience).
Amazon's ability to quickly deliver consumer purchases is a unique factor that supports and drives its growth, along with the increased appetite for online shopping. Analysts say the investment in AWS and content supports its expansion into new products and services and new geographies with significant potential.
TradingView technical analysis was looking bearish on all time frames on Feb 4th. Both the momentum indicator and the moving averages (MAs) are showing selling signals.
But algorithm-based forecasting platform Wallet Investor announced its long-term forecast for Amazon stock, which was positive and bullish, as it expects the Amazon share price to reach about $3,534.50 by the end of the year to reach $4,211.52 by the end of 2023. The share price may also reach the level of 5573.79 USD by 2025. The price is expected to reach USD 6,285.04 by January 2027.
CoinPriceForecast forecasts the stock will reach $6,885 per share by the end of 2030, up from $4,216 per share at the end of 2025 and $3,221 per share at the end of 2022.
When looking at Amazon stock predictions and forecasts, you should keep in mind that these forecasts are not accurate as the price can be affected by many factors and unexpected events in the future.
Always do your own research and always keep in mind the importance of keeping up with the latest Amazon stock news and market trends. Also try to do some technical and fundamental analysis and get expert opinions before making any investment decision. Remember also that past Amazon stock performance is no guarantee of future returns, and you should never invest money that you cannot afford to lose.
Could Amazon's stock reach $4,000 in 2022?
As mentioned earlier, AWS is also the market leader in cloud infrastructure services, and most of the company's earnings growth is expected to come from this high-margin region.[2]
Data provided by Finbold indicates that Amazon Web Services accounts for the largest share of cloud infrastructure service providers at 33%.
The strong results of these AWS services and announcements demonstrate the increasing strength of the company's diversification strategy as Meta (NASDAQ:FB) may lose some market share to Amazon. Strong AWS statistics confirm the continued increase in cloud computing business.
The acquisition of MGM Studios will also enhance the video streaming service and help it increase the number of Amazon Prime customers. Besides the company announcing that it will increase the price of its Amazon Prime membership for the first time since 2018 after its results were released, it may have also boosted investor confidence in the stock, which will make it one of the best investments in 2022.
Considering that Amazon's recent announcements about AWS and its core e-commerce earnings results have exceeded expectations, along with a planned price increase for Prime membership, the company is well positioned to expect Amazon's share price to reach $4,000 by the end of the year.
Amazon reported that its biggest and longest shopping period ever was during Cyber Monday's Black Friday weekend, led by sales of apparel, beauty, homeware and toys. During the holiday season, Amazon Marketplace Outbound Sellers achieved record sales worldwide. These sales generated more than $100,000 in revenue, and between Black Friday and Christmas, sellers in the United States sold an average of 11,500 products per minute.[1]
Speaking about the latest earnings report, Vice President and Chief Financial Officer Brian T. Olsavsky said Amazon has suffered more than $4 billion in costs from inflationary pressures, lost productivity, and disruption to operations. He added that cost challenges are expected to persist in the first quarter of this year, although adjusted for lower seasonal volumes.
In response to higher wages and transportation costs as well as its expansion of Prime membership benefits, Amazon said it will raise the price of annual subscriptions in the US, from $12.99 to $14.99 per month and from $119 to $139 per year. This is the first increase in membership rates since 2018 and these additions will take effect on February 18 for new members and on the next renewal date after March 25 for subscribers.
The Amazon Web Services (AWS) business posted a strong quarter as organizations and developers continued to embrace cloud services. Olsavsky said that AWS services revenue grew 40% year-over-year in the fourth quarter to an annual revenue operating rate of $71 billion, the fourth consecutive quarter of an accelerating rate of revenue growth.
Price hike in response to profits
When earnings were announced after the market closed, Amazon's share price rose by $395.34 to $3,172.25, an increase of 14.24% after a 7.81% decline per share during the trading session. The stock has been down 18.52% since the beginning of the year when it was trading around $3,408 per share.
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