After navigating a challenging 2022, Amazon (NASDAQ: AMZN) and the broader stock market experienced a remarkable resurgence in 2023.
With Amazon’s surge surpassing 80%, factors such as the booming interest in generative AI solutions, a recovering advertising market, and the continuous growth of Amazon Web Services (AWS) fueled the rebound.
As 2024 unfolds, a prevailing optimism among investors centers on Big Tech’s ability to sustain its upward trajectory. This optimism is fueled by the belief that the Federal Reserve’s anti-inflation efforts are tapering off, potentially paving the way for interest rate cuts, a shift in market dynamics that was unforeseen just months ago.
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Seeking deeper insights into Amazon’s market sentiment, Finbold examined consensus 12-month price forecasts on January 11 to gauge where Wall Street anticipates the tech giant’s shares to close the year.
Wall Street’s price targets on AMZN stock
It is safe to say that akin to investors, Wall Street experts are also largely bullish on Amazon’s stock performance prospects for 2024.
This optimism is reflected in analysts’ forecasts, with the average 12-month price target on the company’s shares currently sitting at $184.13, implying an upside potential of nearly 20% from the latest stock closing price of $153.73.
Moreover, the average analyst rating on the stock is Strong Buy, based on 42 experts who expressed their bullishness on AMZN in the past three months. During this period, no analysts rated Amazon as Hold or Sell, according to TipRanks.
Latest analysts’ views
In the most recent coverage of Amazon, BMO Capital Markets initiated coverage of the stock, baptizing it with an Outperform rating and a price target of $200. The firm’s price objective suggests an upside potential of over 30% from the company’s current share price.
A few days earlier, D.A. Davidson issued a Buy rating on AMZN, setting the price target on the stock at $195, up from the firm’s previous call of $157.
“We still see a long ramp ahead across all of its businesses,” D.A. Davidson analyst Gil Luria wrote in a January 3 report. “We believe a potential re-acceleration of growth in Amazon Web Services could drive upside to shares in 2024, as AMZN gets some of the Generative Artificial Intelligence boost already in MSFT, GOOGL, and META shares.”
The new price target is 27% higher than AMZN’s present share price.
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