As 2024 unfolds, Amazon (NASDAQ: AMZN) finds itself at the intersection of success and scrutiny. The tech giant has faced criticism for its controversial practice of air conditioning its robots while neglecting employee comfort. Nevertheless, it has continued to thrive, driven by its robust e-commerce operations and the burgeoning success of Amazon Web Services (AWS), its cloud infrastructure division.
The Current Landscape
While AMZN shares are currently trading below their yearly highs—largely due to a recent dip—market analyst and former hedge fund manager Jim Cramer attributes this trend to a mass migration of investor interest towards the Chinese market. Yet, despite the fluctuations, Amazon’s stock remains impressively up by 22.22% since the start of the year. Notably, early August saw a significant downturn, prompting questions about whether Amazon can maintain its upward trajectory toward new all-time highs (ATH) or if a more substantial decline awaits.
At a glance, the future looks promising for Amazon, with a strong buy rating from analysts on the stock analysis platform TipRanks, according to data from Finbold on October 7. Impressively, 44 out of 45 experts recommend buying AMZN stock, with only one analyst expressing a neutral stance. Notably, there are currently no sell recommendations, indicating strong confidence in the company’s long-term prospects.
Analysts predict that Amazon shares could rally another 20.13%, reaching a price target of $224.05 in the next 12 months, up from the current price of $183.25. Even the lowest price forecast suggests a slight upside, projecting the stock to reach $186 within the next year.
Short-Term Caution from Wells Fargo
Despite the overall optimistic outlook, some recent revisions have added a note of caution. On October 7, Wells Fargo (NYSE: WFC) downgraded Amazon’s stock rating from ‘overweight’—or buy—to ‘equal weight’—or hold. This adjustment came with a price target reduction from $225 to $183, marking the new Street low and indicating a minor predicted downside compared to AMZN’s current price.
Wells Fargo attributed this cautious stance to Amazon’s past successes, suggesting that the company may face challenges in sustaining linear growth. Analysts also highlighted increasing competition, particularly from retail giant Walmart (NYSE: WMT), as a potential pressure point.
Continued Optimism from Other Firms
In contrast, not all recent forecasts have been so bearish. On October 4, JPMorgan (NYSE: JPM) reaffirmed its ‘buy’ rating and maintained a price target of $265—one of the highest estimates on the Street. Truist also echoed this sentiment with a similar high target in late September. Meanwhile, Morgan Stanley (NYSE: MS) reiterated its bullish ‘overweight’ assessment, projecting a target of $210.
Also Read: Amazon Stock Eyes 19% Surge – Analysts Project $222 Target Amid 25% YTD Growth
Regardless of the mixed analyst opinions, Amazon’s performance in 2024 has been commendable, evidenced by a 22.22% rise since January 2. Currently trading at $183.25, the stock is only slightly below its ATH near $200 reached in July. As the company navigates the complexities of competition and investor sentiment, all eyes will be on Amazon to see if it can not only maintain its momentum but also reach new heights in the stock market. With a blend of cautious optimism and competitive challenges, Amazon’s journey in 2024 remains one to watch.
