Amazon com, Inc. AMZN Stock Forecast & Price Targets

what is the outlook for amazon stock

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Is AMZN A Buy, Sell, Or Hold?

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group. The market’s negative reaction to AMZN’s Q financial results is likely attributable to the company’s below-expectations fourth quarter top line and operating profit guidance. As for profits, the analyst community is calling for per-share earnings of $9.25 in 2028 versus 2023’s comparison of $2.90. Profit growth will likely outpace sales growth simply because faster-growing cloud computing is a (much) higher-margin business.

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From what we see today, consumer sentiment weakened further in November 2022 even as inflation eased slightly. This was particularly so for the larger ticket items that saw a decline of almost 20% for the group. US Consumer Confidence also fell to a three-month low, indicating pessimism for the next three to six months. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer.

Short Interest

what is the outlook for amazon stock

Both of the e-commerce giant’s key profit centers are poised for significant growth for the next several years. The other catalyst is the return of share repurchases for AMZN. Walmart’s total footprint in the U.S. devoted specifically to e-commerce fulfillment is estimated to be just 21 million square feet, with 7 million planned for future use. Costco reports having 31 million total square feet of distribution and logistics facilities during fiscal 2021, but it’s unclear how much of that is devoted to e-commerce.

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  2. The results of this JPM CIO survey indicated that 35 of the 85 CIOs (or more than 40% of respondents) surveyed indicated that they had the intention to spend more on AWS services in the forward three-year period.
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However, the energy crisis around the world is largely easing as energy costs are expected to be lower in 2023 than in 2022. On the flip side, don’t look past the obvious trends you have good reason to believe will persist for many more years. Even just extrapolating a company’s current growth rate into the future is a reasonable approach in determining the sort of results that an organization is likely to produce down the road. AWS’ earnings are still only scratching the surface of their eventual potential, though. Mordor Intelligence believes the global cloud computing market will swell from just under $700 billion this year to more than $1.4 trillion in 2029.

A few of the products the company does manufacture are the Kindle and Fire Tablets, Fire TVs, and smart home devices like Echo. Echo is powered by an AI personality named Alexa which can take vocal commands from its users. On the flip side, making educated guesses about a company’s future is — ultimately — what investors do.

Other reasons for his gradually increasing bullishness include effective cost management, which should result in notably higher margins, and the company’s ever-strengthening regional distribution network. There are three main levers for management to pull to drive this $6 billion in incremental cost headwinds down to zero, which I have discussed in another article. The three main levers are productivity improvements, fixed cost leverage and easing of inflation.

The primary concern for the retail industry entering the holiday quarter was supply. Top retailers Costco Wholesale (COST 1.01%), Target (TGT 0.18%), and Walmart (WMT -0.08%) have handled this quite well, with inventories much higher than last year. The company has had a winning year, but its stock still has plenty of room left to run in the new year. Access our top stock picks, proprietary research reports, stock screeners and more. Upgrade to MarketBeat All Access to add more stocks to your watchlist.

The AWS business is currently experiencing external challenges that management cannot control and I continue to take the view that the AWS business will drive long-term shareholder value. As inflationary pressures ease, this should not just reduce externally driven costs like wages, shipping cmc markets scam costs and fuel costs, but should also bring incremental demand back from consumers. For the deceleration in revenue growth for AWS, I am not very concerned by this as I know and have written in past articles the strong competitive advantage AWS has as a leader in the cloud computing market.