Generally, the Amazon stock (NASDAQ: AMZN) is profitable for investors. It is one of the most popular long-term stocks and has amazing growth potential.
Those gains translate to a 25.8% compound annual growth rate for Amazon compared to an 8.2% CAGR for the S&P 500 in that time. As a result, $10,000 in AMZN stock purchased 20 years ago would now be worth $983,555. A $10,000 investment in the S&P 500 over the same period, however, would amount to $48,675.
The Future of Amazon
Forecasters predict that Amazon will reach $200 per share a year from now and will continue to rise to $250 per share at the end of 2026. In 2027, the prediction is for a price of $300, and $250 by the end of 2028.
On the earnings side, earnings per share (EPS) are expected to rise 20% in 2025, although projections indicate a 77% gain for 2024. That said, 20% earnings growth is still impressive and is reason enough to own the stock, as long as it can be purchased at a fair price.
Investors should temper expectations
Wall Street consensus analyst estimates point to revenue and earnings per share increasing at compound annual rates of 7% and 10.6%, respectively, between fiscal 2024 and fiscal 2027. These are healthy growth rates, to be fair.
Analysts See 13% Upside For Amazon Stock
Amazon joined the blue-chip Dow Jones Industrial Average earlier this year. Despite the stock's recent push to record highs, Wall Street analysts still see room to run for Amazon. Of the 72 stock analysts following Amazon, 94% have a buy rating, according to FactSet.
The stock value may increase to $271.00-431.00 by the end of 2025. However, some analysts expect the rate to decline to $230.49-207.83 in 2025. In 2026, the asset quotes will continue to grow. According to major analytical agencies, the value of TSLA may reach $305.36-471.00.
Apple long term stock forecast is anticipated to be $315 in 2025, $370 in 2026, $425 in 2027, $465 in 2028, and $480 in 2029. In 2030, analysts anticipate Apple shares will be worth $510.
Amazon's growth
A $1,000 investment at the closing price on the day of the IPO and not sold would be worth roughly $1.87 million today. The stock made its debut on May 15, 1997, at a pre-split closing price of $23.50 per share ($0.098 per share split-adjusted).
Then, the company held off on stock splits for quite some time, choosing to let shares appreciate in step with Amazon's growth. However, once its price moved and stayed well above $3,000 beginning in late 2020, the company couldn't hold out any longer.
If you had invested $1,000 in Apple stock on Jan. 24, 1984, today, you would have $1,593,809. Likewise, if you had invested $1,000 in an index fund replicating Nasdaq, you would have $55,090. A similar $1,000 investment in an index fund that replicates the S&P 500 would be worth $29,230.
Amazon.com Inc. shows a Risk Score of 8.00.
With that, you could expect your $10,000 investment to grow to $34,000 in 20 years.
When you run out of stock, Amazon will automatically remove your listing, marking it as “inactive”. And when you don't have an active listing, you can't sell!
Here's your answer: If you'd invested $1,000 in shares of Tesla at the beginning of 2015, you'd have a stake worth $27,615 a decade later. That's an average annual gain of around 39%, more than triple the S&P 500's average annual gain of 12%.
Amazon Stocks Price Target for 2030
We estimate Amazon's stock price to be $370 per share with 10% year-over-year revenue growth but compressed margins from more competition in its AWS unit.
If Amazon grows its earnings per share (EPS) by an average of 25% annually over the next three years, it could achieve an EPS of around $9.25 by FY 2027 (up from an estimated $4.74 in FY 2024). Applying a 35x P/E ratio in line with Amazon's historical average suggests a fair stock value of over $300.
(NASDAQ:AMZN) is arguably one of the best blue chip stocks to buy, as it is a market leader in e-commerce and cloud computing. While the stock was up by about 47% in 2024, there is room for additional gains owing to the investments the company is making to strengthen its growth metrics and long-term prospects.
We continue to see Apple as overvalued, as we believe there are growth headwinds to iPhone revenue in a mature smartphone market and with higher competition out of China. We expect iPhone revenue to return to growth in fiscal 2025 after a couple of weak years of growth.
Indeed, Apple shares will never get back to $700, says The Economist.
Can Microsoft stock reach $1,000? It's certainly not expected to in the near term. The algorithmic forecasts of Wallet Investor (as of 2 December 2022) looked five years ahead and predicted the price could more than double to $502.288 by mid-November 2027.