During the past month, Amazon’s (NASDAQ: AMZN) stock has shown a significant upward trajectory, reaching the expected milestone of $200. Market experts are optimistic about the future growth of this prominent e-commerce firm, especially in the domain of artificial intelligence (AI) innovation.
With a pre-market uptick of 0.66%, the AMZN shares are set to commence trading on July 11 at $199.88, recovering from a 0.16% dip in the previous five days.
Short-term forecasts for AMZN stock’s price movements may vary, but analysts foresee a potential breakthrough in 2025 for this e-commerce behemoth.
Amazon set to uphold robust growth in the next quarter
On July 10, TD Cowen reiterated its bullish outlook on Amazon by updating the price target to $245 from $225 while maintaining a “buy” endorsement.
The company anticipates a solid performance in Q2 2024, with revenue forecasted at $150.2 billion, marking an 11.8% year-over-year increase. This growth is mainly attributed to significant progress in Amazon Web Services (AWS) and advertising revenues, expected to rise by 16.6% and 22.0% year-on-year, respectively.
TD Cowen also predicts a substantial 98% year-over-year surge in operating income to $15.2 billion for the second quarter, surpassing consensus estimates by 20%.
These prognoses rely on increasing gross profits, improved operational efficiencies, and the benefits arising from extended server lifespan.
Amazon’s Prime Day as a potential positive catalyst for AMZN stock value
As of July 9, MKM analyst Rohit Kulkarni’s discussions with a seasoned e-commerce professional have reinforced the “buy” recommendation, along with a $210 price target for Amazon.
The e-commerce veteran is optimistic about Amazon’s Prime Day performance for the current year, anticipating an acceleration compared to the trends of 2023.
During the previous year, U.S. online sales on Prime Day increased by 6.1% year-over-year to $12.7 billion, with Prime members globally purchasing over 375 million items, making it the most successful Prime Day to date.
Forecasts suggest a growth of 6% to 9% in Prime Day sales this year, with double-digit growth anticipated across almost all segments in the second quarter and towards the end of the year.
Overall, the market sentiment is predominantly bullish, with all 42 surveyed experts recommending AMZN stock as a “buy,” categorizing it as an attractive investment choice.
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