After a challenging 2022, Amazon (NASDAQ: AMZN), along with the broader stock market, witnessed a noteworthy rebound in 2023.
Its surge of more than 80% last year was fueled by a combination of factors, including the fervor surrounding generative AI solutions – where Amazon emerged as a key player – the recovering advertising market and its constantly growing Amazon Web Services (AWS) cloud business.
As the tech sector experienced a revolution, coupled with favorable macroeconomic conditions and a resilient US economy, the S&P 500 index nearly touched a new all-time high, missing it by just 0.5%.
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With investors eager to gauge the sustainability of Amazon’s upward trajectory in 2024, Finbold sought insights from ChatGPT, asking the chatbot about where it sees the e-commerce giant’s shares trading this year and the pivotal factors likely to influence its trajectory.
What did ChatGPT say?
Though it noted that its attempt to predict Amazon’s price action is “highly speculative,” it is safe to say that ChatGPT was fairly bullish on the tech giant’s stock performance prospects in 2024.
Notably, OpenAI’s tool said its prediction was “based on historical performance, market trends, and potential future developments.” With those in mind, ChatGPT said the “reasonable most likely price range” for AMZN at the end of this year is $150 – $300.
That forecast range implies a notable upside in Amazon’s shares, up to nearly 100%.
Key factors on which ChatGPT based its prediction are Amazon’s historical performance and improving market circumstances.
“Amazon has shown a history of growth, but the current price seems quite low compared to historical levels. A return to a moderate growth trajectory can lead to a price within this range.”
– the bot said.
Other potential catalysts that make up the bull case for AMZN’s 2024 performance include earnings growth, wider market expansion, positive investor sentiment, and innovative developments
Bear case
In its response, ChatGPT noted a potential bearish scenario for Amazon’s stock price trajectory in 2024, outlining key factors that could contribute to a negative outcome.
To be more specific, possible challenges that can hinder AMZN’s gains in the coming months are regulatory headwinds, market volatility, and intensifying competition.
Additionally, a global economic recession would also weigh on the company’s shares as it could lead to “reduced consumer spending and slower revenue growth for Amazon,” ChatGPT explained.
In this case, AMZN could face a pullback toward the $80 – $100 range by the end of 2024, the bot said.
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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.
