Amazon (NASDAQ: AMZN) stock has faced its share of turbulence in 2024, particularly after a sharp dip in early August following its all-time high (ATH) of $200. However, recent weeks have seen the tech giant’s stock price regain momentum, bolstered by the ongoing artificial intelligence (AI) frenzy that continues to captivate investors.
A Sharp Decline, Followed By A Swift Recovery
After soaring to $200 in early July, Amazon’s stock took a significant hit, plunging to $161 at the beginning of August due to a broader stock market downturn. This dip alarmed some investors, but AMZN has since made a robust recovery. By mid-September, the stock had climbed back to around $187, signaling renewed optimism in its future performance. Analysts point to Amazon’s strong fundamentals and its intensified focus on AI as key factors driving this resurgence.
Wall Street’s Bullish Outlook
Despite the earlier slump, Wall Street analysts remain overwhelmingly optimistic about Amazon’s stock. According to multiple sources, the average one-year price target for AMZN is $222.88, which suggests a potential upside of 19.17% from its current levels.
Notably, the lowest forecast among these experts places Amazon’s stock at $186, a modest decline of 0.55%, while the highest projection reaches $265, implying a massive 41.70% gain. Such predictions highlight the broad consensus that Amazon remains a solid investment, even amid market volatility.
In fact, of the 43 analysts offering predictions for Amazon’s stock over the past three months, 42 recommend a ‘buy,’ with only one urging investors to ‘hold’ and none advising to sell, according to TipRanks.
Expert Opinions Drive Confidence
Key industry experts have weighed in on Amazon’s future, further bolstering investor confidence. Brent Thill of Jefferies, a notable Wall Street voice, labeled Amazon as a “top favorite” stock in a recent CNBC interview. He emphasized Amazon’s robust cloud division and AI advancements, although he slightly lowered his price target from $235 to $225.
Meanwhile, Needham’s Laura Martin reiterated a ‘buy’ rating with a $210 target, and JMP Securities’ Nicholas Jones raised his target from $245 to $265, rating Amazon as ‘market outperform.’ Deepak Mathivanan of Cantor Fitzgerald similarly gave Amazon an ‘overweight’ rating, with a $230 target.
As of pre-market trading on September 13, Amazon’s stock stood at $187.02, marking a 0.72% daily gain, a 6.79% rise over the past week, and a 10.31% increase for the month. Since the start of 2024, Amazon’s stock has grown by 25.15%, underscoring its strength amid broader market challenges.
While the stock has faced resistance at the $200 level, it remains well-supported at $164, suggesting a solid foundation for future growth. However, investors should remain cautious, as market volatility could affect Amazon’s stock price in the short term.
With strong fundamentals and growing involvement in AI, Amazon’s stock is poised for continued success, according to Wall Street experts. However, investors should exercise caution, staying informed of any relevant developments and conducting their own research before making any decisions.
