The e-commerce giant with fingers in multiple very lucrative pies, including streaming, gaming, audiobooks, and cloud infrastructure, Amazon (NASDAQ: AMZN) recently published a particularly strong earnings report for the fourth quarter of 2023.
The report beat analyst expectations in multiple categories as it showcased, for example, a rapid growth of Amazon Web Services (AWS) and a 14% rise in revenue.
Investors reacted rapidly and decisively, and Amazon rose approximately 7% in the extended session in the night between Thursday and Friday and 2.63% in the last trading day, closing at $159.28 on February 1.
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Even without the strong Q4 results, it isn’t a stretch to say that the e-commerce giant has been doing exceptionally well. The company’s stock is up 41.07% in the last 52 weeks and is 6.24% up since January 1, 2024.
Additionally, while below its all-time highs at press time, the current trend hints that might reach and surpass them in the coming months.
With all of these developments in mind, Finbold decided to consult the AI-driven predictive algorithms to see how far their analysis estimates Amazon can go by the end of 2024.
Predictive algorithms set AMZN stock price for December 31, 2024
The immediate bad news coming from the machine-learning algorithms is that they predict that Amazon is very close to its short-term peak and will start plummeting in the coming weeks and even fall as low as $100 by mid-June.
On the flip side, the predictive AI believes the 37.22% decline is temporary and will, if anything, present a buying opportunity for savvy investors as the e-commerce giant’s shares are set to again start surging in the second half of 2024.
In fact, by December 31, the algorithms estimate Amazon stock will be worth $197.45 – 6.09% above its previous all-time high of $186.12 reached on July 8, 2021. Additionally, the AI estimates that Amazon will experience significant volatility through January 2025 but will generally trade around $200.
The data retrieved from the algorithms also reveals that Amazon has had 15 green days out of the last 30 and that investors are generally bullish on the stock. The “Fear & Greed Index” – the index that tracks current market sentiment – ranks the blue-chip giant as “fear.”
Analysts equally bullish on AMZN stock
As it turns out, analysts are as bullish on Amazon’s 12-month prospects as the robots are. All 36 experts analyzed by TipRanks rate the stock as a “buy,” meaning it is, generally, a decisive “strong buy.
The price targets are similarly very optimistic. On average, analysts expect Amazon to rise to a new all-time high in the coming 12 months and reach $190.26. Such a surge would constitute a 19.45% upside compared with the current price.
The high estimate is even more bullish than the machine learning algorithms as it sees AMZN stock shooting to $225, and even the low estimate forecasts an upside of 6.73% at $170.
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