Amazon shares are one of the market cap largest companies on NASDAQ. However, the recent fall of Amazon stock due to the stock split has created a confusing environment for new investors. If you are a beginner and confused about is Amazon stock a good buy, then don’t worry; in this article, I’ll show you a detailed fundamental and technical analysis of Amazon.com’s stock price. Don’t forget to read the price prediction of Amazon stock below in this article…
Is Amazon Stock A Good Buy?
The first thing is that this is not a piece of professional advice. Consult any financial advisor about your investment goals. The professional will provide you with a strategy to accomplish your investment goals. However, I have prepared a detailed analysis to answer your question, ‘Is Amazon Stock a good buy?’
The straightforward answer is that if your goal is to make a long-term investment, then this is one of the best stocks you can buy right now. According to 60 out of 56 top stock experts, investors are advised to hold their Amazon stocks. Traders Union predicted that Amazon will hit $200.15 by the end of 2024.
Currently, Amazon.com, Inc. (AMZN) is hanging around 147.42 on NASDAQ. After a 50% drop in 2022, AMZN shares have had an outstanding performance this year (2023). The stock is currently up by an impressive 71%. Also, we all know how strong Amazon stock is from a fundamental perspective.
| Market Cap | 1.52T |
| P/E Ratio | 76.78 |
| Div Yield | N/A |
| 52 Weeks High | $149.26 |
| 52 Weeks Low | $81.43 |
| Revenue | 554.03B |
| Net Income | 20.08B |
| Volume | 41,905,965 |
| Analysts Suggesting | Strong Buy And Hold |
Amazon Stock Price Prediction 2024
Now some of you may ask, ‘Is now a good time to buy Amazon stock?’ The answer depends on your investment strategy and investment goals. According to Coin Price Forecast, which is a reliable source for stock prediction, Amazon’s share price will touch $150 by the end of this year (2023).
The Amazon share price indicates a strong buy for long-term investment. As I said, the price will touch $150 by the end of 2023. If everything goes right, then the Amazon stock price will touch the $200 mark at the end of 2024. After that, AMZN will slowly rise and hit $250 within 2026. Here is the price prediction of Amazon Stock Price in 2024, 2025, 2026, and so on…
| Year | The predicted price of AMZN |
|---|---|
| 2024 | $150-$166 |
| 2025 | $202-$262 |
| 2026 | $246-$265 |
| 2027 | $291-$320 |
| 2028 | $339-$368 |
| 2029 | $385-$390 |
| 2030 | $397-$403 |
| 2031 | $413-$423 |
Amazon Stock Split
After the stock split and the major drop in Amazon’s share price in 2022, retail investors are confused about whether is it a good time to buy Amazon stock or not. In 2022, on March 9, Amazon.com Inc. announced a 20-1 stock split and a $10 billion stock buyback order.
The board of Amazon Inc. said, “The stock split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest.”
However, many analysts and experts say the reason behind the 2022 Amazon stock split is the buyback order. In seven years, Amazon reported its first quarterly loss in 2022. Due to the crisis of the supply chain, poor inflation management, and bad investment in EV startup Rivian, Amazon reported this loss.
What Will Amazon Stock Be Worth In 5 Years?
The tech giant faced a massive slump last year, but now that the table has turned, the share price is up by 72% as of the market close on December 11th. With a $1.5 trillion market cap, the AMZN is a go-to option for new investors.
What will Amazon stock be worth in 5 years? The answer is hidden behind the new era of AI. Last week, Amazon revealed a list of new AI products/services that will integrate into its Amazon Web Service division. As of now, AWS is the global leader in cloud computing services.
AWS announced a partnership with Nvidia to make a new AI chip and chatbot for businesses. This partnership made it clear that Amazon is making its business future-proof. Several analysts expect these decisions will help the company grow in the future. Microsoft is also fighting for its No. 2 position in cloud services. The $10 billion investment in OpenAI by Microsoft may pose a challenge to Amazon’s plans for its new generative AI.
Should I Invest $1,000 In Amazon?
Before you consider Amazon stock as a good buy option, you need to check this out… When you search for the top stocks on NASDAQ, you will see Amazon on the list. AMZN ranked No. 3 in the top 10 stocks on NASDAQ.
However, top investors suggest that you need to create a diversified portfolio to decrease the risks. Despite a 75 PE ratio, reflecting an expensive valuation, Amazon had earned a reliable growth stock. 2023 has been an excellent year for Amazon shareholders. If you want to invest $1,000 in Amazon, then you need to invest in the top 10 stocks on NASDAQ to create a diversified portfolio.
Conclusion
In the end, you get the answer to ‘Is Amazon stock a good buy?’ If you check Amazon’s price history, then you can notice the stable and reliable growth of AMZN stock. JPMorgan analyst Doug Anmuth said the lawsuit “was very much as expected, and we believe it will be challenging to prove that AMZN illegally maintains monopoly power.” If you have any other questions regarding this stock, feel free to ask me in the comment section. Also, read these articles to learn more about finance and stocks below.
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