Amazon Stock Forecast And Price Prediction (Updated September 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: 15/09/2023

Altman Z-Score: 4.4

Piotroski Score: 5.0

ESG Score

Updated on: 15/09/2023

Environmental: 49.6

Social: 59.2

Governance: 53.0

Financial Health

Updated on: 15/09/2023

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: 15/09/2023

$212.340
Discounted Cash Flow Value

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$141.320
Current Price

AMZN Revenues by Segment

Updated on: 15/09/2023

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: 15/09/2023

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: 15/09/2023

CIK	Exchange	Title

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Amazon Stock September 2023

Amazon stock surged to an unprecedented peak. It is propelled by favorable analyst ratings and institutional investments.

As of September 1, 2023, Amazon stock performance has been volatile. On Friday, AMZN opened at $138.01 per share, ranging from a low of $81.43 to a high of $143.63 over the past year.

Financially, Amazon.com has a debt-to-equity ratio of 0.37 and a current ratio of 0.95, indicating its ability to meet short-term obligations. Its quick ratio is 0.70, measuring its most liquid assets against short-term liabilities.

With a market capitalization of $1.42 trillion, Amazon.com wields significant influence in the global e-commerce and technology sectors.

For investors evaluating stocks, metrics like the price-to-earnings (P/E) ratio and price-to-earnings-growth (PEG) ratio provide insights. Amazon.com’s current PE ratio is 108.67, meaning investors pay around $108 for each dollar of earnings per share. The PEG ratio, reflecting earnings growth potential, is 1.76 for Amazon.com.

Amazon.com’s beta coefficient of 1.26 indicates historical volatility higher than the overall market.

Meticulous analysis exposes Amazon’s stock’s enduring trend of strong performance. Regarding recent price trends, as of September 1st, Amazon.com’s stock shows stability with a 50-day simple moving average (SMA) of $132.73 and a 200-day SMA of $115.78.

Investors and market participants interested in AMZN should consult comprehensive research and analysis tools to make informed investment decisions aligned with their goals and risk tolerance. Investors should always seek an Amazon stock forecast to make informed decisions about their investments, considering its historical performance and market factors.

AMZN Stock Forecast: Target Price, Valuation, and Price Chart Insights

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: 15/09/2023

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 $141.32

Concensus $165.22

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Low $0.00

Median $162.00

High $0.00

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Social Sentiments

4:00 PM (UTC)

Date:15 September, 2023

0
Twitter Sentiment

0
Stocktwits Sentiment

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Analyst Ratings

Analyst / firm	Rating
James Lee Mizuho Securities	Buy
Laura Martin Needham	Buy
Joseph Feldman Telsey Advisory	Buy
Doug Anmuth J.P. Morgan	Buy
Youssef Squali Truist Financial	Buy

Show more

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.

Shall you buy Amazon Stock?

A summary of key points derived from search results sheds light on both sides of the argument:

Reasons to buy Amazon stock:

1. Increased profitability. Analysts foresee Amazon becoming an attractive option for investors. They might consider buying at a higher price, expecting large future gains from holding onto the stock.
2. Valuation. Amazon shares are below their peak. This indicates a reasonable valuation that may attract value-oriented investors.
3. Long-term prospects. Amazon’s long-term outlook remains bright. Its shares reside in value stocks. This makes them attractive for individuals whose investment goals and risk tolerance match.
4. Good investment. Amazon is seen as solid, especially when obtained at a reasonable price. This indicates the possibility of making wise investment choices.

Reasons not to buy Amazon stock:

1. Potential pullback. Investors could seize an opportunity to buy shares at a lower price if a pullback occurs.
2. Weak rating. Amazon stock holds a weak IBD Composite Rating of 36 out of 99, indicating caution for prospective investors.
3. Short-term bearish prediction. On March 24, Gov Capital’s analysis indicated a bearish short-term view for Amazon stock. This conclusion was drawn from considering several technical indicators.

In summary, investing in Amazon stock depends on an investor’s unique strategy, risk tolerance, and horizon. While there are strong arguments for buying Amazon stock, there are also reasons to be cautious.

Amazon expands its presence in the medical field

We may anticipate additional Amazon entrance into the healthcare industry in 2023, as it has done over the last several years.

In 2018, Amazon made headlines by purchasing PillPack for a reported $1 billion. The online pharmacy service does more than fill prescriptions. They also place the medications into individual packets that are time and date stamped and clearly labeled with the appropriate dose information. The first medical service offered by Amazon was renamed Amazon Pharmacy.

When Amazon announced last year that it would buy One Medical for $3.9 billion, it caused quite a stir. Around 800,000 individuals in 16 cities have access to the primary care startup’s online and in-person services hybrid. Patients can use instant messaging to communicate with their doctors. They can also schedule appointments, renew prescriptions, and have video visits through the app.

Amazon recently dissolved its partnership with Berkshire Hathaway and JPMorgan Bank, known as Haven. This was an example of a failed strategy implementation. Also, Amazon has ended its primary care program, Amazon Care. It offered telemedicine and in-office treatment.

It’s no secret that Amazon wants a piece of the healthcare pie. If the company’s previous actions are any indicator, we can expect to see it make additional inroads in the industry in 2023. Yet, we don’t know how that will happen.

Amazon’s AI Investments: Driving Growth and Tech Advancements

Amazon has been leveraging artificial intelligence (AI) in diverse ways. This has driven its growth and technological progress. Here are the key areas where AI is making a significant impact for the company:

1. AWS Growth: Amazon Web Services (AWS), the company’s cloud computing division, is investing substantially in AI. The growth of AI cloud computing is expected to fuel AWS’s expansion, leveraging Amazon’s prominent position in the market.
2. Demand Forecasting: AI is transforming how Amazon forecasts demand. It uses AI algorithms to optimize stock levels across locations and times. This leads to lower inventory costs, fewer stock-outs, and improved customer experiences.
3. Recommendation Engine: AI plays a crucial role in Amazon’s recommendation system, a key revenue driver. It analyzes customer behavior to suggest products with high purchase likelihood. This way, it boosts sales and satisfaction.
4. Large Language Models (LLMs): Amazon acknowledges LLMs and generative AI’s potential. It’s shifting focus to these technologies as overall revenue growth slows. The aim is to draw AI companies to develop products on its AWS cloud service. It will leverage LLMs’ capacity to understand and create human-like language.
5. Programming Languages: Amazon provides tools featuring programming languages and code suggestions. This AI-driven feature boosts developer productivity. This happens by offering intelligent coding recommendations, and streamlining the development process.

To sum up, Amazon’s significant AI investment is positioning it as a more tech-oriented enterprise. AWS leads in profit generation. The company leverages AI for cloud computing growth, demand forecasting, recommendation engines, and large language models. This strategy drives success and keeps Amazon at the technological forefront.

Predictions for Amazon in the Year 2023

With the knowledge that the current climate of rising inflation and economic troubles throughout the world is just transitory. It is safe to say that Amazon has maturely handled the setbacks and should see improved growth in 2023 and 2024.

The corporation is, for instance, making strides toward a more robust cost structure, which is a major benefit for the future. The premiere of NFL Thursday Night Football and other such programs also drive more and more people to sign up for Amazon Prime.

One of Amazon.com’s greatest strengths is its varied product offerings. E-commerce is its moat, AWS is its growth engine, and ad income is just now coming into focus. To this end, faith in Amazon’s business model is crucial. Furthermore, the current decline allows investors to include it in their 2023 portfolios.

Considering the positive outlook for Amazon’s future growth and its diverse business model, the AMZN stock forecast holds significant potential for investors.

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.