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Amazon.com, Inc. (AMZN), headquartered in Seattle, Washington, is the world's largest online retailer and marketplace. The company engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores. With a market cap of $2.2 trillion, its products include books, music, computers, electronics, and numerous other products. Amazon offers personalized shopping services, web-based credit card payment, and direct shipping to customers. It also operates a cloud platform offering services globally.
Shares of this e-commerce giant have outperformed the broader market considerably over the past year. AMZN has gained 44.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.9%. In 2024, AMZN stock is up 36.1%, surpassing the SPX’s 25.8% rise on a YTD basis.
Narrowing the focus, AMZN has lagged behind the ProShares Online Retail ETF (ONLN). The exchange-traded fund has gained about 48.8% over the past year. However, AMZN’s gains on a YTD basis outshine the ETF’s 26.5% returns over the same time frame.
AMZN's strong performance can be attributed to its successful ad tech business, AWS cloud computing growth, and strategic acquisition of Whole Foods Market. The company's data capabilities power new shopping assistant Rufus and drive growth in ad revenue. AWS’ partnership with Comviva, Amazon's Prime program and distribution network support its online retail success, while the Whole Foods acquisition expands its presence in the physical grocery market.
On Oct. 31, AMZN shares closed down more than 3% after reporting its Q3 results. Its EPS of $1.43 topped Wall Street expectations of $1.14. The company’s revenue was $158.9 billion, surpassing Wall Street forecasts of $157.1 billion. For Q4, AMZN expects revenue in the range of $181.5 billion to $188.5 billion.
For the current fiscal year, ending in December, analysts expect AMZN’s EPS to grow 85.6% to $5.27 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 49 analysts covering AMZN stock, the consensus is a “Strong Buy.” That’s based on 45 “Strong Buy” ratings, three “Moderate Buys,” and one “Hold.”
This configuration is more bullish than a month ago, with 43 analysts suggesting a “Strong Buy.”
On Nov. 1, Citigroup Inc. (C) analyst Ronald Josey reaffirmed a “Buy” rating and increased the price target for AMZN to $252, implying a potential upside of 21.8% from current levels.
The mean price target of $236.78 represents a 14.5% premium to AMZN’s current price levels. The Street-high price target of $285 suggests an upside potential of 37.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
