The current consensus 1-year price target for Amazon stock is $220.00, which is a -0.69% upside from today's stock price of $218.50. Of all the analysts covering Amazon, the stock is a consensus buy, with a 1.37 “Buy” rating. 24/7 Wall Street's 12-month forecast projects Amazon's stock price to be $225.
Even though it's already made millionaires, this company still has incredible growth prospects. It may not be the same as a young upstart, but it also comes with less risk. Amazon stock should amply reward investors over the next five years.
Amazon.com Inc. shows a Risk Score of 8.00.
Ten Year Stock Price Total Return for Amazon.com is calculated as follows: Last Close Price [ 218.94 ] / Adj Prior Close Price [ 14.74 ] (-) 1 (=) Total Return [ 1,385.6% ] Prior price dividend adjustment factor is 1.00.
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).
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.
Analysts See 10% Upside For Amazon Stock
Amazon joined the blue-chip Dow Jones Industrial Average earlier this year. Despite the stock's strong push to record highs, Wall Street analysts still see room to run for Amazon. Of the 73 stock analysts following Amazon, 95% have a buy rating, according to FactSet.
Amazon (AMZN) does not pay a dividend.
Amazon (AMZN), the e-commerce and cloud giant, saw an outstanding performance in 2024, reaching an all-time high of $233. Gaining 50%, Amazon outpaced its benchmark indices, including the S&P 500 (SPX), which rose 23%. The key question is whether Amazon's growth momentum will persist in 2025.
The all-time high Amazon stock closing price was 232.93 on December 16, 2024.
You can buy Amazon stock through an investment account, also known as a brokerage account. You'll need to add money to the account and then search for Amazon stock within the brokerage's platform by searching "AMZN." You can also buy Amazon stock through Amazon's direct stock purchase plan.
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.
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.
Today, the stock trades at just under 22 times 2024 earnings, notably below its five-year average price-to-earnings ratio of 26. That makes the stock a buy today because even if you still don't think it's a bargain, investors will probably realize most of Coca-Cola's future growth and dividends as investment returns.
If you are a long-term investor, it is still not too late to buy Amazon stock, given the many growth levers that the company has. For instance, its digital advertising business has a decent growth runway as it ramps up ads on Prime.
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.
Amazon's shares have surged more than 46% higher in 2024, backing down very slightly from a recent all-time high. Market timing is difficult, and Amazon has a long history of outperforming expectations.
NASDAQ: AMZN
Even starting with a relatively small $1,000 just 10 years ago, you would now have about $10,500. Placing the same amount in the S&P 500 would've resulted in about $3,300.