Amazon Stock Forecast: Will AMZN Reach A New High This Year?

Amazon (AMZN) stock has soared to an all-time high closing price of $214.10 in the wake of better-than-expected third-quarter figures.

The online giant, founded by entrepreneur Jeff Bezos in the 1990s, revealed an 11% increase in net revenue to $158.9 billion, while operating profit rose 55% to $17.4 billion.

It also predicted net sales for the fourth quarter to be between 7% and 11% higher than the corresponding period in 2023.

But how much of this positive news has already been factored into the stock price? Should investors expect a period of consolidation, or are further increases on the cards?

Here, we consider the major price drivers behind the bullish AMZN price action and reveal analysts’ latest Amazon stock predictions for 2025 and algorithm-based projections for 2027, 2029, and 2030.

Table of Contents Table of Contents

1. Key Takeaways
2. Summary of the Latest Amazon (AMZN) Stock Predictions
3. Amazon Stock Analysis: Where Next For AMZN Stock?
4. The Latest Amazon News & Key Stock Price Drivers
5. Amazon Stock Forecast: Analyst Views
6. Latest Amazon Stock Forecasts for 2024, 2025 & 2030
7. The Bottom Line: Should I Invest in Amazon?
8. FAQs
9. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Summary of the Latest Amazon (AMZN) Stock Predictions
3. Amazon Stock Analysis: Where Next For AMZN Stock?
Show Full Guide
4. The Latest Amazon News & Key Stock Price Drivers
5. Amazon Stock Forecast: Analyst Views
6. Latest Amazon Stock Forecasts for 2024, 2025 & 2030
7. The Bottom Line: Should I Invest in Amazon?
8. FAQs
9. References

Summary of the Latest Amazon (AMZN) Stock Predictions

Amazon Stock Analysis: Where Next For AMZN Stock?

The AMZN stock price has risen 49.14% over the past year to $214.10 as the market closed on November 13, 2024.

However, the last few years have been a wild ride full of volatility for Amazon shareholders, with the massive rally of 2020 and 2021 being almost wiped out by the 2022 bear market.

At the start of 2023, the AMZN stock price was down to just $84. Since then it’s risen 155% with investors impressed by its financial results and the fact it’s well positioned in generative AI.

So, in which direction is the next Amazon’s expected stock price movement?

The Latest Amazon News & Key Stock Price Drivers

Amazon, a titan in online retailing, dominates sectors such as e-commerce, electronics, and digital services. As such, its performance across all these verticals can affect Amazon’s share price performance.

Amazon Prime service boasts more than 200 million subscribers worldwide; its Alexa AI voice assistant is used across many electronic devices, including its own Echo brand; and AWS, its business cloud offering, is the cloud market leader.

In late October 2024, Amazon announced an 11% increase in net sales to $158.9 billion for the third quarter. This compared to $143.1 billion for the same period in 2023.

Net income, meanwhile, came in at $15.3 billion, or $1.43 per diluted share, compared with $9.9 billion ($0.94 per diluted share) for the previous year’s third quarter.

However, unlike other technology leaders such as Meta (META) and Alphabet (GOOGL), Amazon has not yet started paying dividends.

Amazon also highlighted a number of positives since its second-quarter results were announced:

Andy Jassy, Amazon’s President and CEO, is excited about what the company has in store for customers heading into the holiday season.

In a statement, he said:

“We kicked off the holiday season with our biggest-ever Prime Big Deal Days and the launch of an all-new Kindle lineup that is significantly outperforming our expectations; and there’s so much more coming, from tens of millions of deals, to our NFL Black Friday game and Election Day coverage with Brian Williams on Prime Video, to over 100 new cloud infrastructure and AI capabilities that we’ll share at AWS re:Invent the week after Thanksgiving.”

Amazon Stock Forecast: Analyst Views

So, what are the Amazon stock expectations of analysts? What is their AMZN price target and where will the company go from here?

Russ Mould, investment director at AJ Bell, highlighted a number of positives in the recent third-quarter results that have gone down well with the market. He said:

“Amazon’s e-commerce arm is significantly more high profile but Amazon Web Services is the company’s real growth engine, with its leading position in cloud computing proving a massive boon.”

Mould pointed out that demand was surging as companies “look to develop and implement” new generative AI tools that require huge capacity for data storage.

“Servicing this comes at a cost – Amazon is having to spend huge sums on property, equipment and infrastructure both now and in the future – but the difference with some of its peers is that shareholders are able to see signs of a return on this investment,” he explained.

Looking ahead, Mould noted how Amazon had teased new AI and cloud-based capabilities, which it is set to share imminently.

“While the market is focused on cloud, the company’s retail and advertising businesses are also in decent shape,” he added.

Dan Romanoff, a Senior Equity Research Analyst at Morningstar, increased his fair value estimate on the stock from $195 to $200 based on the third-quarter results.

He said in his Amazon stock outlook on November 1, 2024:

“Amazon continues to gain efficiencies throughout the network, which helps lower costs and improve delivery speeds and ultimately drives increased purchases by Prime members. We now see shares as fairly valued, after a strong run since early August.”

Retail demand trends remain unchanged over the last 18 months, pointed out Romanoff, with e-commerce performing well but showing signs of consumer stress.

“Amazon continues to target the overall customer experience by expanding its selection, offering lower prices, and improving delivery speed,” he said. “These factors continue to drive order frequency and ticket sizes for Prime members.”

Romanoff also noted how the third-quarter revenue grew 11% year-over-year to $158.9 billion, compared with the top end of the guidance of $158.5 billion.

“Relative to our estimates, online stores, subscription services, and AWS performed best, while third-party seller services and advertising modestly lagged,” he added. “The two key segments for long-term growth, AWS and advertising, both expanded 19% year-over-year.”

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, branded third-quarter figures as a “strong set” of results.

“Growth at Amazon’s cloud business (AWS) and e-commerce improvements both helped deliver an eyewatering uplift in profitability,” he said. “Recent generative-AI print also looks very promising, and there are hopes that this can drive the next wave of growth at AWS.”

Chiekrie also pointed out the recovery story for the retail business is still providing a major tailwind for annual growth numbers.

“Margins have been resuscitated following the better revenue and gargantuan cost-saving efforts, including layoffs,” he said. “Amazon has a dominant position in the e-commerce market, and its Prime membership ties it all together in a nice bow of recurring revenue.”

Over the longer term, Chiekrie believes the ongoing shift toward e-commerce has room to run, with management sounding confident in its ability to expand margins by scaling up facilities.

“We like Amazon’s position and back it to help drive efficiency gains,” he explained. “But it’s a competitive space, and low-cost competitors remain hot at the group’s heels.”

With AWS and areas like advertising, he also believes that Amazon has growth drivers in place to carry it through the next cycle.

“With a longer-term time horizon, we think Amazon will be able to expand its leadership position,” he said.

Raed Alkhedr, Chief Global Market Analyst at Equiti Group, told Techopedia he sees Amazon’s expansion into health and grocery, as well as growth in cloud computing, as major upside catalysts from here. He said:

“Improving IT budgets and companies’ greater willingness to shift infrastructure to the public cloud remain catalysts for AWS in the longer run. Operating margin may continue to expand on cost cuts, efficiencies and rising contribution from cloud and ads. Amazon’s push for pharmacy and grocery are large undertakings that also serve as positive catalysts.”

Latest Amazon Stock Forecasts for 2024, 2025 & 2030

Amazon stock is rated as a ‘Strong Buy,’ according to the views of 45 analysts compiled by TipRanks as of November 14, 2024. While 44 see it as a ‘Buy,’ one has a ‘Hold’ recommendation in place.

Their consensus one-year Amazon stock forecast 2024/2025 is for the stock to reach $238.35, which represents an 11.33% premium over the $214.10 closing price on November 13, 2024.

However, the stock is only rated a ‘Moderate Buy,’ according to the views of 43 Wall Street analysts compiled by MarketBeat. While 41 see it as a ‘Buy,’ two have ‘Hold’ recommendations in place.

The following table shows the 10 latest analysts’ Amazon stock predictions.

Elsewhere, the Amazon stock prediction 2025 of algorithm-based WalletInvestor puts the stock at $233.87 in 12 months.

What about Amazon’s long-term stock forecast?

By the end of 2027, it suggests AMZN could be at $285.

WalletInvestor’s five-year Amazon share price forecast expects the stock to have risen strongly to $334.29 by November 2029.

The Amazon stock forecast for 2030 from Coincodex, meanwhile, has some mixed expectations. The AMZN stock price is expected to be north of $300 at the start of 2030 but closer to $200 by the year-end.

However, it’s worth noting that both analysts’ forecasts and algorithm-based Amazon stock projections might prove to be wrong because a company’s prospects will depend on a variety of factors and unknowns.

The Bottom Line: Should I Invest in Amazon?

There’s clearly a lot of love for Amazon in the marketplace. The online retailer’s stock price has soared in response to its positive financial results.

However, the test will be whether it can continue beating expectations and maintain its position as a global leader in the competitive world of e-commerce.

While it seems to have the financial firepower to succeed, there are likely to be looming regulatory concerns, as well as the ongoing costs related to AI investments.

Anyone considering whether to put money into Amazon stock must consider their own investment objectives to decide if it’s an acceptable risk.

They will also need to draw their own conclusions about the stock and accept that even skilled analysts can get it wrong when it comes to Amazon stock long-term forecasts.

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