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Amazon.com, Inc. (AMZN) is a Seattle-based e-commerce and cloud giant with a market cap of over $1.9 trillion. The company dominates global online retail through its Prime program and expansive distribution network. Additionally, Amazon leads the charge in cloud computing with Amazon Web Services (AWS) and revolutionizes consumer electronics with its innovative Alexa-powered devices.
Shares of the e-commerce giant have significantly outperformed the broader market over the past 52 weeks. AMZN has gained 59.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27.5%. In 2024, shares of AMZN are up 21.6%, compared to SPX's 11.2% gains on a YTD basis.
Zooming in further, AMZN also outpaced the GX E-Commerce ETF’s (EBIZ) 44.1% gains over the past 52 weeks.
Amazon’s expansive strides in e-commerce, cloud computing, and advertising, record-breaking profits in its retail and advertising divisions, and pioneering advancements in artificial intelligence (AI) integration throughout its operations have driven its outstanding performance across broader sectors.
On May 1, AMZN stock surged 2.3% after the company reported Q1 results the day before, beating analyst estimates. Despite slightly lower-than-anticipated Q2 sales guidance, the impressive performance sparked optimism in the market.
For the current fiscal year, ending in December, analysts expect Amazon to report EPS growth of 64.4% to $4.67. The company’s earnings surprise history is promising. It has beat the consensus EPS estimates in all four quarters.
The consensus view on AMZN has been bullish overall. Among the 46 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 42 “Strong Buy” ratings, three “Moderate Buys,” and one “Hold.”
This configuration is slightly more bullish than three months before, with 41 analysts suggesting a "Strong Buy" rating.
On May 6, Loop Capital analyst Rob Sanderson raised Amazon's price target from $215 to $225, maintaining a "Buy" rating. They cited AWS reacceleration and underestimated retail profit ramp as key drivers post a strong Q1 report. Loop projects sustained profit growth, particularly from services, with AWS margins at record highs and AI as a promising revenue stream.
The mean price target of $218.70 represents a premium of 18.4% to AMZN's current levels. However, the Street-high price target of $246 suggests an upside potential of 33.2%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
