Price for 05/09/2024 - 188.76 USD 

Insights on Amazon Stock Forecast

For the next month, the forecast for Amazon stocks is bullish. Based on the data published on nasdaq.com, the quotations may exceed the $177 mark. This gives a growth of about 14% relative to the levels of mid-January 2024. 

The minimum level expected by experts by mid-February 2024 is $170. BeatMarket analysts also predict the price of AMZN to rise. 

Analysts' Consensus: 

Analysts are predominantly bullish about Amazon's stock, citing expected revenue growth, operational enhancements, and increased operating income as reasons for optimism.

Average 12-Month Forecast: 

The average forecast for Amazon stock is $169.77, signifying an anticipated 18.55% increase. Analysts' predictions range from $116 to $230, showcasing varying opinions and the inherent uncertainty in stock market forecasting.

Operational Improvements: 

Amazon's focus on productivity initiatives and reduced capital expenditures is expected to notably boost its operating income in 2023, contributing significantly to the positive forecast.

Short-Term vs. Long-Term Views: 

While short-term algorithm-based forecasts might indicate a bearish outlook, long-term perspectives for 2025 and beyond remain notably bullish, reflecting confidence in Amazon's future market performance.

Market Reaction and Future Outlook: 

Despite mixed reactions to recent financial results, the general consensus leans towards an optimistic future for Amazon. Key metrics such as revenue, EPS, and market capitalization support this positive sentiment.

In mid-January 2024, the candlestick chart of Amazon quotes shows the following patterns:

• Deliberation Bearish - on the 1M timeframe;

• Doji Star Bearish and Deliberation Bearish - on the 5H timeframe;

• Engulfing Bearish - on the 1H timeframe.

All the candle patterns listed above are bearish. Yet, they are of average reliability. It is better to consider them as indicating a rally slowdown. They should not be taken incorrectly as a guarantee of trend reversal. 

Among the key tools of technical analysis, the most important are:

• moving averages;

• momentum;

• RSI oscillator.

The first two indicators on the daily chart signal the purchase expediency. RSI value is close to the level of 60.3. This value is interpreted differently by traders. Among them, some of them consider it a recommendation for further purchases. Others believe it to be a neutral value. 

Based on the technical analysis, our analytics agree with the majority of experts. We expect Amazon quotes to continue growing and to update the historical highs in 1-2 months. 

In the event of an upward trend break, the levels may serve as strong support:

• $149,34;

• $139.27;

• $129,48.

Overall Market Sentiment:

• Long-Term Stock Value: Analysts foresee Amazon potentially reaching around $200 in the next five years, emphasizing its capability to generate substantial revenue and profits despite market fluctuations.

• Resilience and Adaptability: Recent challenges haven't dampened the belief in Amazon's ability to recover and thrive in the long run.

Analyst Projections and Forecasts:

• Stock Analysis: Analysts widely recommend a "Strong Buy" for Amazon's stock, anticipating an 18.55% increase in the next 12 months, with a potential range between $116 to $230.

• Revenue Growth: Expected growth rates of 13.04% this year and 11.74% next year, coupled with a notable rise in EPS, highlight Amazon's strong fundamentals.

Specific Focus Areas and Growth Drivers:

• Amazon Web Services (AWS): Projected to be a major growth driver due to the expanding cloud computing market, potentially worth close to a trillion dollars by 2026.

• Segment Projections: Forecasts predict a combined operating profit of $23.5 billion on revenues of $782 billion by 2026 from Amazon's North America and International segments.

• Share Price Projections: Ambitious projections place Amazon's share price between $4,424 and $7,189 by 2026, underlining a positive long-term growth trajectory.

Summary:

• Diverse Business Segments: Amazon's potential expansion across various sectors makes it an appealing choice for long-term investors.

• Robust Future Growth: Projections underscore Amazon's potential to significantly grow and maintain a leading position in its key operational areas.

In essence, Amazon appears poised for continued growth, with its diverse business arms and strong fundamentals positioning it favorably for substantial expansion over the next five years.

Regular Price Trends Analysis:

• Seasonal Trends: The stock demonstrates notable volatility across the year. April registers the highest average regular price at 153.17, contrasting with January's lowest average at 141.83. This indicates a bullish trend at the start of the year, signaling potential growth or significant fluctuations.

Minimum and Maximum Regular Prices Assessment:

• Risk Assessment: Examining the range between minimum and maximum regular prices provides insights into risk levels. For instance, March showcases a wide range (135.30 - 152.33), signaling higher volatility and associated risk during that period.

Least Possible Price Analysis:

• Market Pessimism: Analysis of the lowest mean value highlights a potentially pessimistic market outlook, notably lower in January (120.55) and higher in April (130.20). A narrower range in April (125.95 - 133.15) compared to March (115.01 - 129.48) indicates reduced downside risk as the year progresses.

Best Possible Price Outlook:

• Optimistic Scenario: Figures for the best possible prices reach their peak in April (176.15 mean) and drop to their lowest in January (163.10 mean). The wider range in March and April (over 20 points) suggests substantial potential for upward movement but also heightens uncertainty.

Overall Market Implications:

• Volatility and Potential Movements: Monthly volatility is significant, indicating potential for both upward and downward movements. The variation between least and best possible prices showcases differing market views on the stock's potential, urging investors to prepare for both optimistic and pessimistic scenarios.