Is Amazon a good stock to buy right now?
Wall Street analysts expect Amazon to reach a new high. Of the 60 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 208 for Amazon stock, according to FactSet.
After examining many stocks in today's market, I've concluded that Amazon (NASDAQ: AMZN) is one of the best buys available. Even though it's had a strong 2024, up 11%, I still think there is room for upside. I've pinpointed five factors that make Amazon a strong buy now, even with its great performance in 2024.
Amazon's analyst rating consensus is a Strong Buy. This is based on the ratings of 41 Wall Streets Analysts.
But based on this assumption, Amazon stock trades for about 35 times this 2024 free-cash-flow estimate. It isn't a cheap stock, but if you believe Amazon will continue growing and ratcheting up profit margins for years to come, this remains a top buy-and-hold stock for the long haul.
Analysts are generally optimistic about Amazon's business and stock price in 2024. The analysts covering Amazon are projecting full-year adjusted earnings per share of $2.96 in 2024, up from $2.06 in 2023. In addition, AMZN analysts are calling for 11.8% revenue growth in 2024.
Given the current short-term trend, the stock is expected to rise 22.07% during the next 3 months and, with a 90% probability hold a price between $203.51 and $218.86 at the end of this 3-month period.
Amazon stock has received a consensus rating of buy. The average rating score is A1 and is based on 97 buy ratings, 3 hold ratings, and 0 sell ratings.
Amazon's (NASDAQ: AMZN) stock is up 66% over the last 12 months after a stellar growth year. Cost-cutting measures and investment in lucrative sectors like artificial intelligence (AI) have put the company on a promising trajectory that could offer major gains over the long term.
| Previous Close | 174.12 |
|---|---|
| Bid | 174.70 x 1100 |
| Ask | 174.71 x 800 |
| Day's Range | 173.26 - 176.46 |
| 52 Week Range | 88.12 - 180.14 |
Stock Price Forecast
The 45 analysts with 12-month price forecasts for Amazon stock have an average target of 182.29, with a low estimate of 116 and a high estimate of 230. The average target predicts an increase of 4.37% from the current stock price of 174.66. * Price targets were last updated on Feb 2, 2024.
What will 1 share of Amazon stock be worth in 10 years?
In 2030, the Amazon stock will reach $ 800.51 if it maintains its current 10-year average growth rate. If this Amazon stock prediction for 2030 materializes, AMZN stock willgrow 349.17% from its current price.
Definition of 5 Year Price Total Return
Five Year Stock Price Total Return for Amazon.com is calculated as follows: Last Close Price [ 178.22 ] / Adj Prior Close Price [ 83.59 ] (-) 1 (=) Total Return [ 113.2% ] Prior price dividend adjustment factor is 1.00.
According to the latest long-term forecast, Amazon price will hit $200 by the middle of 2024 and then $250 by the middle of 2025. Amazon will rise to $300 within the year of 2026, $350 in 2027, $400 in 2028, $500 in 2029 and $600 in 2032.
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.
He's following a prescribed plan available only to corporate insiders—and his recent cross-country move will reduce the transaction's tax bill. Bezos sold his shares as part of a predetermined process for selling company stock. And his recent move to Miami will ease the tax burden of that process.
| Stock | 2024 performance through Feb. 29 |
|---|---|
| Super Micro Computer Inc. (SMCI) | 204.7% |
| Vera Therapeutics Inc. (VERA) | 206.1% |
| SoundHound AI Inc. (SOUN) | 250% |
| Viking Therapeutics Inc. (VKTX) | 314% |
Apple has a conensus rating of Moderate Buy which is based on 15 buy ratings, 9 hold ratings and 1 sell ratings. What is Apple's price target? The average price target for Apple is $205.03. This is based on 25 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
Shares of Amazon (NASDAQ: AMZN) were soaring today after the tech giant delivered a strong fourth-quarter earnings report after hours, beating estimates on the top and bottom lines, as profit margins ramped up in the quarter and results were solid across the board.
Even faster delivery speeds in 2024
We're continuing to reimagine our operations network, harnessing the power of AI to place even more items in just the right places to anticipate and meet customer demand. We also plan to further expand our Same-Day Delivery service to reach more customers.
Does Amazon pay a dividend?
Does Amazon Pay a Dividend? Amazon does not pay dividends as it prioritizes expansion efforts over distributing profits to shareholders. While some other tech companies like Apple, Microsoft and Cisco do offer dividends, Amazon's focus on growth suggests that dividends may not be on the horizon in the near future.
Microsoft is the largest company in the world, with a market cap of $3.09 trillion. It's followed by Apple ($2.77 trillion), Nvidia ($2.06 trillion), Saudi Arabian Oil ($2.05 trillion), and Amazon ($1.85 trillion).
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.
Amazon shares have soared 612% in the last 10 years alongside its immense success, even taking into account the sell-off in 2022. 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%.
Those gains translate to a 36.6% compound annual growth rate for Apple compared to a 7.4% CAGR for the S&P 500 in that time. That means that $10,000 in AAPL stock purchased 20 years ago would be worth about $5.08 million today, assuming reinvested dividends.
References
- https://www.barrons.com/livecoverage/stock-market-today-030524/card/trump-will-take-super-tuesday-why-the-mag-7-stocks-could-pay--HMPv5q6k2RJskS4LlUYg
- https://www.fool.com/investing/2023/02/27/if-you-invested-10000-in-amazon-stock-10-years-ago/
- https://money.usnews.com/investing/articles/will-the-stock-market-crash-risk-factors
- https://www.cnbc.com/2024/02/03/what-walmarts-new-focus-on-employee-stock-means-for-american-wealth.html
- https://www.tipranks.com/stocks/dis/forecast
- https://www.tipranks.com/stocks/tsla/forecast
- https://www.marketwatch.com/livecoverage/stock-market-today-s-p-500-futures-inch-higher-as-ai-frenzy-continues/card/-magnificent-7-acting-more-like-magnificent-4-in-early-2024-zVAkRWLZy8issuPp7KMm?mod=mw_quote_news
- https://www.fool.com/investing/how-to-invest/stocks/
- https://money.usnews.com/investing/articles/best-performing-stocks-of-the-year
- https://www.investopedia.com/articles/investing/052216/4-benefits-holding-stocks-long-term.asp
- https://time.com/personal-finance/article/ways-to-invest-10k/
- https://www.mstock.com/articles/10-best-shares-to-buy-today-for-long-term
- https://www.investopedia.com/terms/o/openingprice.asp
- https://www.investopedia.com/articles/pf/09/avoid-five-recession-risks.asp
- https://coinpriceforecast.com/wmt-stock
- https://www.screener.in/screens/797657/stock-doubling-every-3-years/
- https://www.investopedia.com/financial-edge/0711/how-to-double-your-money-every-6-years.aspx
- https://www.fool.com/investing/2024/02/11/is-it-too-late-to-buy-amazon-stock-in-2024/
- https://groww.in/blog/what-is-the-right-time-to-exit-a-stock
- https://www.cnbc.com/2018/08/16/warren-buffetts-warning-on-walmart-better-stocks-than-retailers.html
- https://www.benzinga.com/general/education/24/02/36901065/if-you-invested-1-000-in-walmart-stock-at-its-ipo-heres-how-much-youd-have-today
- https://www.quora.com/Does-China-own-any-Walmart-stores-in-America
- https://www.investors.com/etfs-and-funds/sectors/sp500-one-investor-is-the-largest-owner-of-two-thirds-of-u-s-companies/
- https://www.linkedin.com/pulse/7-investing-principles-warren-buffett-topsy-turvy-times-andy-wang
- https://smartasset.com/financial-advisor/where-do-millionaires-keep-their-money
- https://www.tipranks.com/stocks/aapl/forecast
- https://www.businessinsider.com/personal-finance/recession-save-more-cash-strategies-2022-12
- https://stockanalysis.com/stocks/amzn/forecast/
- https://www.nasdaq.com/articles/3-magnificent-stocks-that-have-created-many-millionaires-and-will-continue-to-make-more
- https://www.axiory.com/trading-resources/basics/best-stock-traders-ever
- https://www.investopedia.com/world-s-11-greatest-investors-4773356
- https://coinpriceforecast.com/amazon
- https://www.statmuse.com/money/ask/walmart-stock-price-in-1997
- https://finance.yahoo.com/news/does-amazon-pay-dividends-133620188.html
- https://www.marketwatch.com/picks/this-is-warren-buffetts-first-rule-about-investing-heres-what-to-do-if-your-financial-adviser-breaks-that-rule-01635799738
- https://www.sec.gov/Archives/edgar/data/1164964/000101968715004168/globalfuture_8k-ex9904.htm
- https://www.macroaxis.com/volatility/WMT/Walmart
- https://investorplace.com/2024/01/hold-up-wmt-investors-is-walmart-a-growth-stock-now/
- https://www.nasdaq.com/articles/2-stocks-that-could-double-your-money-in-5-years
- https://www.aljazeera.com/features/2022/12/27/why-do-the-rich-get-richer-even-during-global
- https://www.smallcase.com/collections/long-term-stocks-to-buy/
- https://www.cnbc.com/2018/08/31/if-you-put-1000-dollars-in-amazon-in-1997-heres-how-much-youd-have-now.html
- https://home.csulb.edu/~pammerma/fin382/screener/buffett4.htm
- https://www.investopedia.com/day-trading/best-time-day-week-month-trade-stocks/
- https://www.stash.com/learn/what-is-a-good-pe-ratio/
- https://www.tipranks.com/stocks/amzn/ownership
- https://www.tipranks.com/stocks/wmt/forecast
- https://www.investopedia.com/financial-edge/0412/5-tips-on-when-to-buy-your-stock.aspx
- https://www.wsj.com/business/jeff-bezos-surpasses-elon-musk-as-worlds-richest-person-a65f338f
- https://www.investopedia.com/articles/financial-theory/11/6-lessons-top-6-investors.asp
- https://www.investopedia.com/articles/markets/092115/these-are-benefits-investing-walmart.asp
- https://seekingalpha.com/article/4570924-amazon-vs-walmart-stock-better-buy
- https://fortune.com/recommends/investing/how-to-start-investing/
- https://finbox.com/NASDAQGS:AMZN/explorer/asset_price_return_5y/
- https://www.investopedia.com/ask/answers/061815/what-cost-share-purchase.asp
- https://www.tipranks.com/stocks/amzn/forecast
- https://www.fool.com/research/largest-companies-by-market-cap/
- https://www.quora.com/What-does-it-say-about-a-company-if-it-has-a-P-E-ratio-of-over-200
- https://banzai.org/wellness/resources/rule-of-72-calculator-by-years
- https://www.investopedia.com/terms/p/pe-30-ratio.asp
- https://www.investopedia.com/why-jeff-bezos-sold-usd6-billion-amazon-stock-8584305
- https://www.investopedia.com/articles/insights/052416/top-10-wealthiest-families-world.asp
- https://www.stash.com/learn/how-much-should-i-be-investing/
- https://www.cmegroup.com/education/courses/trade-and-risk-management/the-2-percent-rule.html
- https://www.investopedia.com/articles/stocks/12/most-shocking-stock-increases-falls.asp
- https://www.screener.in/screens/355766/highest-return-in-1-year/
- https://www.investopedia.com/articles/stocks/07/when_to_sell.asp
- https://www.usatoday.com/money/blueprint/investing/what-assets-are-recession-proof/
- https://markets.businessinsider.com/stocks/wmt-stock
- https://www.investopedia.com/articles/basics/06/invest1000.asp
- https://www.macroaxis.com/valuation/WMT/Walmart
- https://www.nasdaq.com/articles/why-amazon-stock-was-surging-today
- https://www.fca.org.uk/investsmart/understanding-high-risk-investments
- https://stockinvest.us/stock/WMT
- https://finance.yahoo.com/news/10-best-stocks-invest-2024-200401023.html
- https://money.usnews.com/investing/articles/best-investors-of-all-time
- https://www.fool.com/investing/how-to-invest/portfolio-diversification/
- https://www.forbes.com/advisor/investing/stock-market-outlook-and-forecast/
- https://www.aboutamazon.com/news/operations/doug-herrington-amazon-prime-delivery-speed-2024-updates
- https://www.screener.in/screens/541146/growth-stocks-for-next-5-years/
- https://www.indmoney.com/articles/richest-investors-in-the-world
- https://finance.yahoo.com/news/6-things-millionaires-doing-money-110059710.html
- https://www.sofi.com/learn/content/when-to-buy-stocks/
- https://www.screener.in/screens/92669/best-long-term-stocks/
- https://www.tipranks.com/stocks/wmt/dividends
- https://money.usnews.com/investing/articles/apple-aapl-stock-investment-worth-today
- https://www.moneyshow.com/articles/daytraders-28139/
- https://www.jpmorgan.com/insights/global-research/outlook/market-outlook
- https://www.bankrate.com/investing/stock-market-basics-for-beginners/
- https://finance.yahoo.com/news/much-money-stock-market-75-180021414.html
- https://www.forbes.com/advisor/banking/is-my-money-safe-in-the-bank/
- https://www.finra.org/investors/investing/investment-products/stocks/evaluating-stocks
- https://www.investopedia.com/articles/markets/100215/biggest-risks-investing-amazon-stock.asp
- https://smartasset.com/investing/5-things-to-invest-in-when-a-recession-hits
- https://finance.yahoo.com/gainers/
- https://www.forbes.com/advisor/investing/best-stocks-to-buy-now/
- https://corporate.walmart.com/news/2024/01/31/investing-in-america-walmart-announces-new-stores-more-jobs
- https://money.usnews.com/investing/articles/best-growth-stocks-for-the-next-ten-years
- https://www.fool.com/investing/2022/10/03/safer-pull-money-out-stock-market-keep-investing/
- https://stockinvest.us/stock/AMZN
- https://capex.com/en/overview/dow-jones-price-prediction
- https://www.miraeassetmf.co.in/knowledge-center/what-is-pe-ratio
- https://www.usatoday.com/money/blueprint/investing/stock-forecast-amazon/
- https://www.nasdaq.com/articles/3-smart-penny-stocks-with-huge-potential
- https://www.nasdaq.com/articles/hot-picks%3A-7-stocks-wall-street-expects-to-double-in-2024
- https://inshorts.com/en/news/warren-buffett-sells-his-last-walmart-shares-after-20-years-1542277375558
- https://coincodex.com/stock/AMZN/price-prediction/
- https://businessmodelanalyst.com/who-owns-walmart/
- https://www.composer.trade/learn/what-is-a-90-10-portfolio-strategy
- https://coincodex.com/stock/WMT/price-prediction/
- https://disney.fandom.com/wiki/Walmart
- https://www.theglobeandmail.com/investing/markets/stocks/WMT/pressreleases/24352039/is-walmart-stock-a-buy-after-its-big-dividend-hike/
- https://www.quora.com/I-want-to-earn-1-000-USD-every-month-from-dividends-How-much-do-I-have-to-invest-and-where
- https://www.cnbc.com/2024/02/16/sp-500-could-hit-6500-by-end-2025-says-capital-economics.html
- https://www.investors.com/how-to-invest/investors-corner/how-to-build-long-term-profits-in-stocks-take-many-gains-at-20-25/
- https://finance.yahoo.com/news/13-stocks-double-2024-153022696.html
- https://www.fool.com/investing/how-to-invest/saving-vs-investing/
- https://groww.in/blog/how-did-rakesh-jhunjhunwala-become-a-billionaire
- https://www.forbes.com/advisor/investing/most-expensive-stocks/
- https://www.investopedia.com/articles/insights/060416/top-4-walmart-shareholders-wmt.asp
- https://www.businessinsider.com/personal-finance/recession-things-not-to-buy-2022-12
- https://finance.yahoo.com/news/3-reasons-buy-amazon-stock-091000877.html
- https://www.sofi.com/learn/content/how-do-you-cash-out-stocks/
- https://www.investopedia.com/articles/trading/09/risk-management.asp
- https://www.fool.com/investing/how-to-invest/stocks/how-to-pick-stocks/
- https://www.thestreet.com/lifestyle/jeff-bezos-net-worth-14657561
- https://www.sec.gov/about/reports-publications/investor-publications/about-settling-trades-in-three-days-introducing-t-3
- https://www.sofi.com/learn/content/how-many-stocks-should-i-own/
- https://www.morningstar.com/stocks/after-earnings-is-walmart-stock-buy-sell-or-fairly-valued-3
- https://finance.yahoo.com/quote/AMZN/
- https://markets.businessinsider.com/stocks/amzn-stock
- https://www.fidelity.ca/en/insights/articles/pull-money-or-keep-investing/
- https://finance.yahoo.com/news/5-reasons-buy-amazon-stock-131500758.html
- https://www.screener.in/screens/801676/6-months-double/
- https://www.forbes.com/advisor/investing/should-you-take-money-out-of-the-stock-market/
