Amazon.com stock has been experiencing a noteworthy increase in value, resulting in its best seven-day winning streak of the year.
Impressive Growth
On Monday, Amazon stock (ticker: AMZN) rose by 1.2% to reach $140.28. This marks the seventh consecutive trading day in which the stock has seen a positive uptick, boasting a remarkable 17% rise. If the stock maintains these levels, it will mark the most successful seven-day stretch since August 2022, according to Dow Jones Market Data.
Strong Earnings Propel Growth
Positive Outlook
Based on this impressive performance, Walmsley raised his price target on Amazon stock to $180 from $178 and maintained his Buy rating. This suggests confidence in the continued growth of the Amazon stock.
Overall, Amazon’s stock shows promising signs of continued success, demonstrating robust financial performance and attracting positive assessments from analysts.
Amazon Surpasses Expectations in Q3 Earnings, Primarily Driven by Amazon Web Services
Amazon has recently announced its third-quarter earnings, revealing both impressive earnings and revenue figures that have exceeded Wall Street’s expectations. While these results have garnered significant attention, the focus has predominantly been on the performance of Amazon Web Services (AWS). During the company’s earnings call, Brian Olsavsky, Chief Financial Officer of Amazon, acknowledged that AWS has faced some challenges due to customers’ ongoing efforts to reduce costs. However, amid these challenges, Amazon has observed a resurgence in sales growth.
Holiday shopping, on the other hand, has raised concerns. Olsavsky expressed that customers remain cautious about prices, opting to trade down whenever possible and cutting back on discretionary spending. Additionally, Amazon’s guidance for fourth-quarter revenue was set at $160 billion to $167 billion, slightly below analyst expectations of $167.2 billion, according to FactSet.
Nevertheless, when it comes to Wall Street’s outlook on Amazon, optimism prevails. Among the 58 analysts surveyed by FactSet, an overwhelming majority of 56 rate the stock as “Buy,” while two advise a “Hold” position.
Amazon: A Strong Earnings-Growth Story in 2024
Overview
After reporting its earnings, Amazon continues to be one of the most promising companies in terms of earnings growth for the year 2024. With several positive indicators, such as the reacceleration of AWS, better-than-expected North American operating income, an almost break-even International business, and consistent double-digit revenue growth, Amazon proves its strength in the market.
Deutsche Bank Analyst’s Perspective
According to Deutsche Bank analyst Lee Horowitz, Amazon’s prospects are looking bright. He believes that with the mentioned factors in play, the company has immense potential for growth. As a result, he rates Amazon stock as a Buy and sets a price target of $175.
Conclusion
Amazon’s strong performance and positive outlook make it a compelling choice for investors seeking earnings growth opportunities. With its strategic positioning and continuous revenue expansion, Amazon is well-positioned for success in the upcoming years.
