Amazon.com Stock Price Prediction: Analyst Optimism

Analysts at Sanford C. Bernstein have recently upgraded their price target for Amazon.com (NASDAQ:AMZN) shares, increasing it from $235.00 to $265.00 in a report published on Wednesday. This revision indicates a favorable outlook for the e-commerce giant, suggesting a potential increase of about 15.12% compared to the stock's previous closing price.

In addition to Bernstein's update, other financial analysts have also shared positive sentiments regarding Amazon's stock. For instance, Bank of America revised its target price from $210.00 to $230.00, rating it as a "buy" in their report dated November 1. Similarly, Needham & Company reaffirmed their "buy" rating with a price objective of $250.00 in a report released on December 10.

Benchmark, another equities research firm, elevated their target from $200.00 to $215.00, also categorizing the stock as a "buy" on November 1. Furthermore, Wedbush raised its price target from $225.00 to $250.00, maintaining an "outperform" rating. Meanwhile, DA Davidson confirmed a "buy" rating with a target price of $235.00 in a note issued on October 10. Overall, a mix of analysts shows two have given a hold rating, 41 have issued buy ratings, and one analyst has assigned a strong buy rating to Amazon's stock. Presently, the stock maintains an average rating of "Moderate Buy" along with an average price target of $242.00, according to MarketBeat.

Recent Stock Performance

On Wednesday, shares of Amazon.com took a slight dip, falling $0.96 to hit $230.19. The trading volume reached approximately 8.7 million shares, significantly below its average volume of over 41 million shares. As for moving averages, the company’s 50-day simple moving average stands at $203.67, while the 200-day simple moving average is $190.54. Financial metrics also reveal a company with a market cap of $2.42 trillion, a P/E ratio of 49.29, a PEG ratio of 1.54, and a beta of 1.16. Notably, Amazon has seen a 12-month low of $144.05 and a high of $233.00.

Earnings Report Highlights

Amazon.com recently published its quarterly earnings on October 31. In this report, the company announced an earnings per share (EPS) of $1.43, surpassing the consensus estimate of $1.14 by $0.29. The business reported a net margin of 8.04% and a return on equity of 22.41%. The revenue generated was $158.88 billion, also exceeding the expected $157.28 billion. Comparing this quarter to the same period last year, revenue has increased by 11.0%. Analysts estimate that Amazon's EPS for the current fiscal year will be around 5.29.

Insider Trading Activity

In other news, SVP David Zapolsky sold 2,190 shares on September 24 at an average price of $195.00, resulting in a total sale value of $427,050. After this transaction, Zapolsky holds 62,420 shares currently valued at approximately $12.17 million, reflecting a 3.39% reduction in his position. Additionally, Director Daniel P. Huttenlocher sold 1,237 shares on November 19 at an average price of $199.06, accumulating $246,237.22. This sale reduced his holdings by 4.73%, leaving him with 24,912 shares valued at nearly $4.96 million. Over the last quarter, insiders have sold more than 6 million shares worth around $1.25 billion, and currently, company insiders own about 10.80% of Amazon's total shares.

Institutional Investment Movements

Numerous institutional investors have recently altered their positions in Amazon. For example, International Assets Investment Management has increased its holdings by an astonishing 20,897.2% during the third quarter, acquiring over 38.9 million shares, valued at approximately $72.92 billion. Parnassus Investments also expanded its stake by 82,457.3%, now owning 11.4 million shares valued at around $2.13 billion after buying an additional 11.4 million shares recently.

State Street Corp raised its position in Amazon by 3.3%, now holding 359 million shares valued at $66.93 billion after an increase of about 11.37 million shares. Moreover, Geode Capital Management lifted its position by 3.4% during the third quarter. Institutional investors and hedge funds collectively own about 72.20% of Amazon’s stock.

Company Overview

Amazon.com, Inc. is widely known for its diverse retail operations, offering consumer products, advertising, and subscription services through both online platforms and physical stores. The company is structured into three main segments: North America, International, and Amazon Web Services (AWS). In addition, Amazon manufactures and sells various electronic devices, including the Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; they also develop and produce media content.

Amazon, Stock, Analyst