Analysts See 10% Upside For Amazon Stock
The 30-year-old Amazon is among the world's most valuable companies. It is a leader in e-commerce spending and in cloud computing through its Amazon Web Services business. It is also quickly growing its advertising business into a challenger to Google (GOOGL) and Meta (META).
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.
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.
For 2025, Wall Street analysts expect revenue to grow by 10.8%. For reference, they think 2024's growth will be about 11%. On the earnings side, earnings per share (EPS) are expected to rise 20% in 2025, although projections indicate a 77% gain for 2024.
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.
Amazon Prime membership costs $14.99 per month or $139 per year, with standard Prime Video costing $8.99 on top of that. Prime Video followed in the footsteps of Netflix, which was the first streamer to bring in ads in 2022 alongside a paid-for option with uninterrupted viewing.
Stock Price Forecast
The 44 analysts with 12-month price forecasts for Amazon stock have an average target of 246.32, with a low estimate of 197 and a high estimate of 290. The average target predicts an increase of 12.75% from the current stock price of 218.46.
The all-time high Amazon stock closing price was 232.93 on December 16, 2024.
Сan Amazon reach $1000 again? Some bullish forecasts suggest it could reach $800 or even $1,000, reflecting a highly optimistic outlook. However, this figure is subject to numerous market conditions and the company's performance over the coming years.
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).
Jeff Bezos
The American founder of Amazon owns 10% of the company (508 million shares), which makes him the largest individual shareholder.
“COST/AMZN/WMT—aka 'The Big Three' will likely gobble ~60%+ of U.S. retail growth this year, so we see Costco's elite share gain as likely to sustain outperformance.” Most of the Street sides with Melich, with 58% of analysts rating Costco stock a Buy, 37% a Hold, and 5% Sell, according to FactSet.
A company's earnings performance is important for momentum investors as well. For fiscal 2024, 15 analysts revised their earnings estimate higher in the last 60 days for AMZN, while the Zacks Consensus Estimate has increased $0.42 to $5.17 per share. AMZN also boasts an average earnings surprise of 25.9%.
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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.
Amazon stock has received a consensus rating of buy. The average rating score is A1 and is based on 98 buy ratings, 2 hold ratings, and 0 sell ratings. What was the 52-week low for Amazon stock? The low in the last 52 weeks of Amazon stock was 149.91.
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.
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.
Global warming accelerates destruction of the Amazon. Deforestation and climate change could damage or destroy as much as 60 percent of the Amazon rainforest by 2030, according to a new report from environmental group WWF.
What experts had long expected is officially happening: Amazon is raising the price of Prime again, boosting it from $119 to $139 annually (and from about $155 to $180 for those who pay monthly). Obviously, Prime affects not only customers but sellers and vendors.
There's technically only one Prime Day per year, however, Amazon hosts another Prime Day-like sales event in the fall. Since 2022, there has been a similar sales event taking place in October under different monikers, which has acted as a precursor to their Black Friday and Cyber Monday sales.