Amazon Stock Forecast And Price Prediction (Updated October 2023)

AMZN Stock Forecast: Analyzing the Data Up to the Present

Investing in Amazon could be a good opportunity for investors seeking a long-term investment. Amazon has had solid financial results in recent years, except for 2022 when the company reported losses. However, the company has made decisions to reduce costs.

In the latest financial report for the first quarter of 2023, the company reported revenues of $127 billion. This represents a 5% increase compared to the same period the previous year, where they reported revenues of $121 billion. Furthermore, the revenues of recent years represent an average annual growth of 22.9% since 2019. It is a significant figure for the magnitude of this company. Amazon continues to grow in sales and adapt to the increasing demand in a highly competitive market.

As for net profit, the company reported a gain of $3.1 billion for the first quarter of 2023. This represents a 256% increase compared to the same period the previous year. Back then the e-commerce giant reported a loss of $2 billion. However, if we compare its net profit since 2019, we see an annual average growth of 10%. This is positive for such an S&P-listed company that continues to innovate to compete in the market.

Analyzing Amazon’s financial ratios shows that it is a company that generates money. It has a 6% return on investment (ROI), which may be somewhat low for leading industry companies. However, it is important to note that the company invests heavily in research and development. It wants to expand its product portfolio and become increasingly competitive.

Amazon is also making significant investments in artificial intelligence. This will help it become more prominent in the sector. Another indicator is the 3% return on equity (ROE), which can also be considered low, and the 1% asset turnover. The important thing is that the company is generating money and is profitable. Amazon faced losses in its 2022 annual report. The company has started reducing costs and becoming more efficient, doing more with less. This speaks of the company’s adaptability.

Furthermore, the debt ratios are below 1, indicating that the company can meet its obligations without issues. Therefore, it would not represent a long-term operational risk for the company. Additionally, the stock has a beta of 1.26, which makes it a medium-high volatility stock, ideal for adding more movement to our portfolios. Considering its size as a large company, Amazon is a great option to have in our investment portfolio.

Strong Buy

Financial Scores

Updated on: 30/11/2023

Altman Z-Score: 4.5

Piotroski Score: 6.0

ESG Score

Updated on: 30/11/2023

Environmental: 49.6

Social: 59.2

Governance: 53.0

Financial Health

Updated on: 30/11/2023

DCF: Strong Buy

ROE: Neutral

ROA: Neutral

Debt to equity ratio: Strong Buy

Price to earnings ratio: Strong Buy

Price to book ratio: Strong Buy

AMZN Discounted Cash Flow

Updated on: 30/11/2023

$217.340
Discounted Cash Flow Value

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$146.320
Current Price

AMZN Revenues by Segment

Updated on: 30/11/2023

Advertising

$377,390,000.00

Amazon Web Services

$800,960,000.00

Online Stores

$2,200,040,000.00

Other Services

$42,470,000.00

Physical Stores

$189,630,000.00

Subscription Services

$352,180,000.00

Third-Party Seller Services

$1,177,160,000.00

Revenue from Contract with Customer, Excluding Assessed Tax

AMZN Revenues by Region

Updated on: 30/11/2023

GERMANY

$335,980,000.00

JAPAN

$243,960,000.00

Non-US

$698,020,000.00

UNITED STATES

$3,561,130,000.00

AMZN Notes Due

Updated on: 30/11/2023

CIK	Exchange	Title

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Amazon Stock October 2023

On October 19, 2023, Jason Helfstein, an analyst at Oppenheimer, raised the price target for Amazon.com (NASDAQ: AMZN) to $170 per share. This had a positive impact on the Amazon stock forecast. The new target is higher at $130, showing optimism for Amazon’s future performance.

Oppenheimer’s target is higher than the average one-year price target. This suggests a positive outlook. Notably, diverse opinions exist in the market, with price targets ranging from $90.90 to $164.32 for Amazon.com.

Amazon’s stock had positive earnings and revenue growth on October 19, 2023. However, the price-to-earnings (P/E) and price/book ratios indicate it may be overvalued. Investors are eagerly waiting for the company’s earnings report on October 27, 2023.

Investors feel good about AMZN stock because it has a strong market position, makes money in different ways, and keeps coming up with new ideas. In addition, its ability to adjust to the growing online shopping trend and enter different areas helps it stay ahead in the technology industry. When considering stock performance, you should carefully consider potential risks and market conditions. On October 19, 2023, Amazon.com Inc’s outlook seemed promising due to its strong finances and market position.

AMZN Stock Forecast: What is the prediction for Amazon stock?

When it comes to Amazon stock price prediction, analysts have given insights into the future performance of the company.

Analysts have set an average 12-month price target for Amazon at $141.09, with a high forecast of $220.00. Meanwhile, the median target for Amazon is $170.00, with a high estimate of $220.00. 

Looking further ahead, the latest Amazon stock prediction shows that Amazon’s price will hit $150 by the middle of 2024. Then, it will climb to $200 by the middle of 2025. The projections continue with a rise to $300 within the year 2026, followed by $350 in 2028, $400 in 2031, and finally $450 in 2033.

Also, analysts predict an average 12-month Amazon stock price forecast at $146.82. This indicates a 14.38% increase. The average price target for Amazon is $144.86, with a range spanning from $111.00 to $270.00.

This indicates the level they believe the stock price could reach shortly. It considers factors such as market trends, financial performance, and industry dynamics.

Market expectations for AMZN stock price vary significantly. The future AMZN stock price predictions range from a low estimate of $97.78 to a high estimate of $270.00. The wide range shows diverse views among analysts about the company’s future.

We observe the company’s valuation based on discounted cash flow. This tells us that the company has a value of $201.24, while the current price is around $130, giving us a safety margin of 54%. This is very positive to consider as we would buy a stock cheaper than its actual value according to its cash flow. According to the theory of value investing, when this happens, the stock price always seeks to approach its real value. Therefore, it would be another indicator to include Amazon stock in our long-term investment portfolio.

We need to analyze the price chart to identify more effective buying zones. This way, we can complement our fundamental analysis indicating that Amazon is a good stock for our portfolio.

The first thing we observe is the breakout of the downtrend line since late 2022. Additionally, there is proximity to the 200-period moving average, which is currently above the price. The moving average often acts as a resistance when approached.

Therefore, we need to monitor the price development. If it surpasses the moving average, we would encounter resistance around $144.86. It would be an ideal entry point if it breaks this resistance with confirmation. The next resistance level would be around $188.19.

However, there’s a possibility. If the price can’t break $144, we might see a retracement. This could lead to a movement back to the 200-period moving average. Another potential target is the support level at approximately $101.64. From a technical perspective, waiting for the price to be in a more optimal entry zone is important.

The earnings history for Amazon shows a mixed picture. While the company has missed estimates in two out of the past four quarters, it has also beaten estimates in two. But, it’s important to mention that the company had a notable miss in the latest quarter (May 2023). The actual EPS was $0.03, which is lower than the estimated $0.17.

Amazon.com, Inc.

AMZN

Strong Buy

Updated on: 30/11/2023

Financial Health

Very Healthy

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Debt to equity ratio: Strong Buy

Price to earnings ratio: Strong Buy

Price to book ratio: Strong Buy

DCF: Strong Buy

ROE: Neutral

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Price Target

Current $146.32

Concensus $168.08

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Low $103.00

Median $170.00

High $270.00

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Social Sentiments

12:00 PM (UTC)

Date:30 November, 2023

0
Twitter Sentiment

0
Stocktwits Sentiment

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Analyst Ratings

Analyst / firm	Rating
Alex Henderson Needham	Buy
Eric Sheridan Goldman Sachs	Buy
Laura Martin Needham	Buy
Jason Helfstein Oppenheimer	Buy
Aaron Kessler Seaport Global	Sell

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Talking about earnings, the estimates for the current and next quarter have stayed quite steady in the last 90 days. This suggests analysts have confidence in these predictions. However, estimates for the current year dipped a bit in the last 30 days, and for the next year, they saw a slight decrease in the last 60 days.

Amazon Stock Forecast: Despite Challenges, Investors See Opportunity 

Amazon’s stock recently faced challenges, with a significant drop of over 200 points. Despite this, the year-to-date performance remains strong, with an impressive 50% increase.

Various factors contributed to the decline. Some are a downturn in the global economy, decreased consumer spending, and inflation. Amazon’s fourth-quarter profits fell short of expectations. This was raising doubts about the company’s growth potential and causing the stock price to plummet. Amazon initiated a major restructuring plan to address these challenges. Significant workforce reductions were part of the plan. Many investors view these difficulties as temporary setbacks. The drop in stock price can be seen as an opportunity for investment.

In a commitment to reduce its carbon footprint, Amazon introduced over 5,000 custom electric delivery vans in the United States on July 6, 2023.

These electric vans are provided by Rivian. Customers have successfully received over 150 million packages in over 800 cities and regions across the United States. It is all thanks to Amazon’s custom electric vans.

Amazon’s custom electric vans have also made their way to Europe. There are plans to introduce over 300 new vans in Germany. The new vans will join the existing fleet of electric vans already in operation.

Amazon’s electric vans are manufactured at Rivian’s factory in Illinois. These electric vehicles prioritize safety and efficiency. The design is focused on 360-degree visibility and the protection of drivers and pedestrians. Also, the vehicles come with advanced safety features. These include sensor detection and a spacious windshield for better driver visibility. Moreover, they offer automatic emergency braking, adaptive cruise control, and collision warnings.

The groundbreaking embedded technology is what sets these custom electric vehicles apart. The unique integration combines the delivery workflow with the vehicle itself. This provides easy access to routing, navigation, driver support, and other features.

Amazon is also exploring and experimenting with various models of electric vehicles. They’ve introduced over 15 different electric vehicle models. These encompass delivery vehicles, e-cargo bikes, and e-rickshaws. Their presence spans the United States, the European Union, and India.

This is part of Amazon’s larger plan to expand its fleet to over 100 cities by the year’s end and reach 100,000 electric vehicles by 2030.

Amazon Stock Forecast 2024

As we approach January 2024, the Amazon stock is expected to kick off the year with a promising forecast. The starting value is expected to be 107, but it may change between 119 and 105 due to market volatility. The average stock price for the month is forecasted at 111, indicating a relatively stable trajectory. As the month draws to a close, the projected value is 112, depicting a positive change of 4.67% for January.

Looking ahead to February 2024, things are looking positive. The month starts at 112 and fluctuates between 120 and 106. The average stock price for the month is expected to be 113, with a slight 0.89% change anticipated at the end of February.

March 2024 presents a promising picture for Amazon stock, starting the month at 113 and possibly reaching a high of 126 and a low of 112. The average stock price for March is projected to be 118, with an expected change of 5.31% by the end of the month.

In April 2024, Amazon’s stock is predicted to keep going up, starting at 119 and possibly going between 133 and 118. The average stock price for April is forecasted at 124, with a 5.04% change predicted by the end of the month.

In May 2024, the Amazon stock is expected to stay stable, starting at 125 and staying between 133 and 118. The average stock price for May is expected to remain steady at 125, with no significant change anticipated by the end of the month.

Final Thoughts on Amazon Stock Forecast

In conclusion, this review provides an honest assessment of Amazon stock forecast. As a company, Amazon demonstrates strength, consistently seeking innovation and exploration. 

Despite facing fierce competition, Amazon remains undeterred in its pursuit of excellence. With a diverse range of products and services, it is evident that Amazon will continue to be a leading company for the foreseeable future. 

Investors can trust Amazon’s resilience. The company is committed to delivering value to customers and shareholders. Our analysis of Amazon stock price reinforces its potential as an investment opportunity.