Amazon.com Inc Stock Forecast:
The average target price for Amazon.com Inc stock, as forecasted by 47 analysts, is $139.55 within the next year. The average analyst rating is considered a Strong Buy and Stock Target Advisor‘s analysis leans towards a Slightly Bullish outlook, based on 6 positive signals and 4 negative signals. Amazon.com Inc’s current stock price is $112.91 and has seen a recent increase of 16.19% in the past week, 34.42% in the past month, but a decrease of 25.03% over the past year.
Amazon released its first-quarter guidance on Thursday that fell short of market expectations. Despite reporting better-than-expected revenue for the fourth quarter, the company’s stock saw a decline in after-hours trading, wiping out most of its gains from the regular trading day.
The key numbers for Amazon’s fourth quarter were earnings of 3 cents per share and revenue of $149.2 billion, beating estimates of $145.42 billion. Other key segments of Amazon also performed well during the quarter, including Amazon Web Services and Advertising. Amazon Web Services reported revenue of $21.4 billion, slightly lower than the expected $21.87 billion. The company’s advertising segment, on the other hand, exceeded expectations with revenue of $11.56 billion, compared to the expected $11.38 billion.
Despite the strong performance of its key segments, Amazon’s first-quarter guidance failed to meet market expectations, causing the stock to slip in after-hours trading. The company’s guidance will be closely watched in the coming days as investors look for signs of growth and stability.
Analysts Coverage Change (AMZN:NSD):
- Morgan Stanley & Co. maintained Overweight with target price range of USD 140 to USD 150 on 02/03/2023.
- Robert W. Baird & Co. maintained Outperform with target price range of USD 120 to USD 125 on 02/03/2023.
- Susquehanna International Group raised target with Positive view and price range of USD 140 to USD 150 on 02/03/2023.
- Piper Jaffray Companies maintained Overweight with target price range of USD 119 to USD 123 on 02/03/2023.
- J.P. Morgan Chase & Co maintained Overweight with target price range of USD 130 to USD 142 on 02/03/2023.
- UBS raised target with price range of USD 118 to USD 127 on 02/03/2023.
- Wells Fargo & Company lowered target with price range of USD 155 to USD 145 on 02/03/2023.
- Wedbush Securities lowered target to Outperform with price range of USD 140 to USD 125 on 02/03/2023.
- Oppenheimer & Co. maintained Outperform with target price range of USD 130 to USD 135 on 02/03/2023.
- Benchmark Research maintained Buy with target price range of USD 125 to USD 130 on 02/03/2023.
- Credit Suisse Group maintained Outperform with target price range of USD 171 to USD 150 on 02/03/2023.
- Rosenblatt Securities raised target to Neutral with price range of USD 103 to USD 106 on 02/03/2023.
- Truist Financial lowered target to Buy with price range of USD 160 to USD 142 on 02/03/2023.
Amazon.com is a highly attractive stock due to its strong financial performance. With a high market capitalization, it is a large and stable company within its sector. The company has consistently delivered superior returns on equity and has efficiently utilized its capital, as evidenced by its positive cash and free cash flows. Additionally, the company has demonstrated top quartile earnings growth over the past 5 years, further demonstrating its strong financial position. These factors collectively make Amazon.com a desirable investment option for those looking for stability and growth potential in the technology sector.
Amazon.com stock is considered overpriced compared to various financial metrics such as earnings, book value, cash flow, and free cash flow. It is trading at a higher price compared to its peers and the sector median on these metrics. This raises caution for potential buyers as the stock may not provide good value for money compared to other investment options.
FA Score (Fundamental Analysis):
The fundamental analysis of Amazon.com is “Slightly Bullish” with a FA score of 6 out of 10, where 0 is very bearish and 10 is very bullish.