Amazon Stock Declines Amid Market Sell-Off
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy AMZN?
Source: Fool
- Stock Decline: Amazon (AMZN) closed at $222.69, down 4.42% on Thursday, reflecting investor reactions to a broader tech and AI sell-off, which has dampened market sentiment.
- Surge in Trading Volume: Trading volume reached 87.3 million shares, about 110% above the three-month average of 41.5 million shares, indicating heightened investor interest in Amazon's future performance despite the stock's decline.
- Mixed Earnings Report: Amazon reported revenue of $213.4 billion, exceeding expectations, although earnings slightly disappointed; AWS cloud service revenue grew 24% year-over-year, showcasing strong performance in the cloud computing sector.
- Capital Expenditure Outlook: Amazon anticipates approximately $200 billion in capital spending by 2026, a staggering figure that may unsettle investors, but if a clear path to return on these investments emerges, the stock could rebound quickly and continue its upward trajectory.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 222.690
Low
250.00
Averages
294.69
High
340.00
Current: 222.690
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Reasonable Market Valuation: With a market cap of $2.6 trillion, Amazon may seem expensive, but its forward P/E ratio of 29 indicates that the stock is not egregiously overvalued, making it a solid long-term investment choice.
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