Amazon’s stock (NASDAQ:AMZN) has seen a 27% increase in 2024 and a 50% increase over the past year. This growth is attributed to the company’s strong performance, cost-cutting efforts, and dominant position in key markets. With a market cap of $2 trillion, analysts are optimistic about Amazon’s future prospects.
In the first quarter of the year, Amazon reported a 13% increase in net sales to $143 billion and a 216% surge in earnings per share to $0.98. The company’s North America and International retail segments saw sales growth, as did the Amazon Web Services (AWS) business. Additionally, advertising revenue increased by 24%.
Amazon’s investments in artificial intelligence (AI) are paying off, with recent hires from AI startup Adept and investments in OpenAI rival Anthropic. Analysts remain bullish on Amazon, with 12 reaffirming Buy ratings in June. Wells Fargo analyst Ken Gawrelski raised his price target for Amazon.com stock to $239 and called it his “Signature pick.”
JPMorgan also maintains a Buy rating on Amazon, with a price target of $240. The analyst believes Amazon will surpass Walmart as the largest U.S. retailer and sees growth potential in Amazon’s Logistics-as-a-service offering.
As Amazon prepares for its Q2 earnings in July, Wall Street expects a jump in earnings per share to $1.03. Overall, Amazon has a Strong Buy consensus rating from analysts, with an average stock price target of $221.68, implying a 15% upside potential.
Despite uncertainties in the macro environment, Amazon continues to deliver strong results across its key businesses. The company’s focus on AI technology has contributed to its stock price growth, with analysts anticipating further strength in the future.