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Q4 outlook for Amazon stock (AMZN) – what to expect?

Q4 outlook for Amazon stock (AMZN) – what to expect

Amazon.com, Inc. (NASDAQ: AMZN) combines a few large businesses, such as e-commerce, cloud, advertising, and other revenue-generating businesses. With this mix, the firm historically generates more revenue and cash flow during Q4 of every year thanks to holiday shopping. 

On the other hand, increased revenues do not always translate into strong returns, which might be the case this year as well, as the stock is down over 37% year-to-date (YTD). Meanwhile, Amazon is cutting costs left and right, with the firm confirming that it ended its home delivery robot program and scraped its “Glow” video device for children. Additionally, Amazon Explore product, a digital travel experience program, was also called off.   

However, with the upcoming holiday season and a strong cost-cutting program, Amazon might have higher than usual revenue and lower costs, thus beating expectations on Wall Street.

AMZN chart and analysis

Both the short-term and long-term trends are negative for Amazon, with the stock trading near the lower part of its 52-week range, below all moving averages. Over the past month, the shares traded from $105.34 to $124.71, with 53.1 million shares traded daily. 

Technical analysis shows a support line at $102.31 and a resistance zone from $113.41 to $116.14.

AMZN chart. Source: Finbold.com. See more stocks here.

Despite its poor performance in 2022, analysts rate the stock a ‘strong buy,’ with the average price in the next 12 months expected to reach $172.24, 61.12% higher than the current trading price of $106.90. Notably, out of 35 Wall Street analysts, 34 have a ‘buy’ rating, and one has a ‘hold’ rating.

Wall Street analysts’ price targets for AMZN. Source: TipRanks  

In a tough environment for high-growth stocks, it is difficult to estimate how much the stock will go up; it will depend mostly on the market sentiment and the gap in actual earnings from the analyst’s estimation.

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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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