Amazon’s stock has been on a rollercoaster ride recently, driven by a mix of positive and negative news. While an AI chip partnership with Intel and the upcoming Prime Big Deal Days offer potential growth, concerns regarding the economy and Amazon’s new office policy weigh on the stock. This analysis explores the factors influencing AMZN’s performance and examines the potential implications for leveraged ETFs like AMZU and AMZD.
Amazon shares are trading higher on Tuesday after announcing a new collaboration with Intel Corp. to develop AI chips for Amazon Web Services (AWS). This news coincides with Amazon’s upcoming Prime Big Deal Days event, which promises exclusive deals for Prime members ahead of the holiday season. Analysts are bullish on Amazon’s stock, with an average price target of $224.15, representing a potential upside of 18.86%.
Amazon’s stock price received a boost from positive retail sales data, but the broader economic picture remains uncertain. While jobless claims fell and retail sales increased, Amazon’s recent earnings report and concerns over inflation create a complex landscape for investors.
Analyst Justin Post of BofA Securities upgraded his rating on Amazon.Com Inc (AMZN) to Buy and set a price target of $204. He anticipates positive earnings for Amazon’s first quarter, with revenue estimates of $143 billion, aligning with market expectations. Post highlights AWS and advertising as potential growth drivers and predicts a possible outperformance in the retail segment. The analyst also discusses Amazon’s strategic shifts and operational efficiencies, which he believes will support margin expansion and drive stock performance. Despite a forward P/S multiple increase year-to-date, Post notes that Amazon’s valuation remains below its ten-year average, suggesting potential for multiple expansion.
