Amazon beat expectations with a 52% increase in earnings, to $1.43 per share. Sales growth of $158.9 billion, up 11% year over year, also beat expectations. While Amazon's sales forecast for the current quarter came in lighter than expected, the company's operating income impressed.
Did you know that a $1,000 investment in Amazon's IPO in 1997 would be worth $1.87 million today? That's a staggering return of over 186,900% 🚀 ✨ But it wasn't all smooth sailing. Investors had to endure a 95% drop during the dot-com bust, waiting until 2009 to recover.
The decline follows remarks from Federal Reserve Chair Jerome Powell indicating that the Fed's decision-making committee is not in a hurry to cut interest rates. Consequently, investors have reduced their expectations for another 0.25% rate cut in December 2024.
Amazon Stock Forecast
The 43 analysts with 12-month price forecasts for Amazon stock have an average target of 244.6, with a low estimate of 197 and a high estimate of 290. The average target predicts an increase of 10.29% from the current stock price of 221.78.
As long as AWS can maintain its profit margins and continue growing at its current 19% year-over-year pace, Amazon as a whole will continue to succeed and rapidly grow profits. At 44 times forward earnings, Amazon isn't cheap.
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.
Based on analyst ratings, Amazon's 12-month average price target is $249.16. Amazon has 13.80% upside potential, based on the analysts' average price target. Amazon has a consensus rating of Strong Buy which is based on 47 buy ratings, 1 hold ratings and 0 sell ratings.
Apple. Apple (NASDAQ: AAPL) has ranked as the largest holding in Buffett's Berkshire Hathaway portfolio for several years. The iPhone maker is still at the top early in the new year. Berkshire owns 300 million shares of Apple worth around $73.2 billion, representing 24.8% of its total holdings.
Given the challenges, Wells Fargo sees limited visibility into Amazon's earnings recovery in the short term and, hence, lowered its price target and rating on the stock.
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.
(NASDAQ:AMZN) stands against the other best long-term stocks. To select stocks with long-term growth potential, investors should focus on fundamental analysis, evaluating financial health through earnings history, revenue growth, and profit margins.
Amazon shies off high after hitting $2,000 per share for the first time. It's a major milestone in the stock's climb to match Apple's $1 trillion market valuation.
Debt Numbers: By the end of 2023, Amazon's long-term debt was around $135 billion. They're big on using debt strategically, whether for acquisitions, expanding AWS, or building warehouses.
The most profitable company in the world is Saudi Arabian Oil Co., also known as Saudi Aramco or just Aramco. Six of the top 10 are from the U.S., with the rest coming from China or Saudi Arabia. The highest-ranked companies either operate in tech, oil and gas, or financial services.
Arguments against buying Amazon include its valuation and economic uncertainty. Arguments for buying Amazon include its increasing earnings and strong growth prospects. No one knows for sure how Amazon stock will perform in 2025, but it should still be a great pick for long-term investors in the new year.
Bill & Melinda Gates Foundation Trust's top holdings are Microsoft Corporation (US:MSFT) , Berkshire Hathaway Inc. (US:BRK.B) , Waste Management, Inc. (US:WM) , Canadian National Railway Company (US:CNI) , and Caterpillar Inc. (US:CAT) .
A: Five rules drawn from Warren Buffett's wisdom for potentially building wealth include investing for the long term, staying informed, maintaining a competitive advantage, focusing on quality, and managing risk.
In the second quarter of 2024, Buffett again bought more shares of Chubb, Occidental, the two Liberty Media Sirius XM tracking stocks, and Sirius XM. He also initiated new positions in aerospace and electronics company Heico and cosmetics retailer Ulta Beauty.
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!
Amazon (AMZN) does not pay a dividend.
Apple's analyst rating consensus is a Moderate Buy. This is based on the ratings of 29 Wall Streets Analysts.
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.
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.
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.