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Amazon stock price forecast: Can it reach $200 in a year?

Price forecast for Amazon stock: Can it reach $200 in a year?

In a year marked by a resurgence in the broader tech market, shares of Amazon (NASDAQ: AMZN) have emerged as a noteworthy performer, leaving a trail of impressive gains in their wake. 

The rally witnessed in 2023 signifies a significant recovery from the lows experienced in 2022, and it owes much of its vigor to the ongoing artificial intelligence (AI) boom that continues to reshape the technological landscape.

This revival hasn’t merely been a matter of perception; it’s backed by Amazon’s robust financial performance. The e-commerce giant’s second-quarter earnings for 2023 soared to an impressive $6.7 billion, in stark contrast to the net loss of $2 billion recorded in the corresponding period of the previous year.

In addition, Amazon is poised to remain a formidable player in the cloud market. Driven by the ever-advancing AI technology, the company’s Amazon Web Services (AWS) stands firmly as the market leader in cloud services since Q4, 2021. 

This, combined with Amazon’s sound fundamentals and promising growth prospects, has translated into a resoundingly positive sentiment among investors, underlining its sound stock market performance throughout the year.

At the time of publication on October 17, AMZN shares are sitting at $132.55, up 2.13% in the past 24 hours. Year-to-date, the stock gained roughly 55%, propelling its market capitalization to $1.37 trillion.

AMZN YTD chart. Source: Finbold

Wall Street’s projections on AMZN

Looking ahead, Amazon’s future appears as promising as its current standing, as reflected in TipRanks’ comprehensive analysis of analysts’ one-year projections for the stock.

Based on predictions offered by 42 Wall Street analysts in the past three months, AMZN’s average 12-month prediction currently stands at $176.10, which is 32.86% higher than the stock’s present market price. 

Analysts’ 12-month price forecast for AMZN. Source: TipRanks

Additionally, the tech giant’s shares carry a consensus rating of a ‘Strong Buy’ on TipRanks, based on 41 ‘Buy’ and 1 ‘Hold’ recommendations in the past three months. 

Is AMZN stock a buy?

Evident from the preceding analysis, an overwhelming majority of over 97% of Wall Street strategists who have recently voiced their views on Amazon are firmly bullish about the stock’s future prospects. Following a significant 49% dip in value during 2022, the tech giant has staged an impressive comeback this year, capitalizing on the prevailing AI surge and its strong foothold in the cloud market.

However, it’s worth noting a potential caveat for prospective investors eyeing Amazon. The company currently faces heightened regulatory scrutiny, notably stemming from a massive antitrust lawsuit filed last month by the Federal Trade Commission (FTC) and 17 state attorney generals. 

These allegations accuse Amazon of leveraging its market dominance to inflate prices and overcharge merchants. The tech giant firmly refuted these claims, but it remains a notable point of concern as the company grapples with the prospect of intensive regulatory scrutiny in the years ahead.

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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