U.S. Stock Futures Fluctuate Amid Tech Stock Rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy AMZN?
Source: Benzinga
- Market Volatility: U.S. stock futures fluctuated between gains and losses on Thursday, with the S&P 500 dipping 0.01% and the Dow Jones falling 0.23%, reflecting market caution ahead of upcoming corporate earnings reports.
- Earnings Focus: Amazon.com Inc. (NASDAQ:AMZN) is set to report earnings after the bell, with analysts expecting $1.97 per share on revenue of $211.32 billion, which could significantly influence market sentiment depending on the results.
- Jobless Claims Insight: The latest weekly jobless claims report will be released on Thursday morning, and market participants will closely monitor this data to assess the durability of the U.S. labor market, potentially impacting the Federal Reserve's monetary policy decisions.
- Bond Yield Trends: The 10-year Treasury bond yielded 4.27%, while the two-year bond stood at 3.55%, indicating market expectations regarding interest rate policies, with the CME Group's FedWatch tool showing a 90.1% likelihood of the Federal Reserve keeping rates unchanged in March.
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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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- Investor Confidence Shaken: Although Amazon enjoys strong demand across various sectors, the aggressive expansion plans have unsettled investors, leading to a decline in market confidence that could impact short-term stock performance.
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- International Market Trends: U.S. markets also showed strong performance post-election, with major index futures rising, indicating global investor interest in tech stocks, particularly in the AI sector, further contributing to the overall market recovery.
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- AWS Strong Growth: Amazon Web Services (AWS) reported an annual revenue run rate of $142 billion in the recent quarter, with a 24% revenue growth rate, marking the strongest growth in 13 quarters and highlighting the business potential driven by AI.
- Diverse Revenue Streams: CEO Andy Jassy noted that customers are seeking AWS for both AI and non-AI projects, suggesting that even if AI demand slows, Amazon can still achieve growth through its non-AI initiatives, alleviating investor concerns.
- Rapid Return on Investment: Jassy emphasized that as new capacity is added, Amazon is able to monetize it quickly, indicating that the company is not solely reliant on AI demand, which boosts investor confidence in its upcoming spending plans.
See More
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- Surge in Capital Expenditure: CEO Andy Jassy indicated that Amazon expects to invest $200 billion in 2026, primarily in areas like AI, custom semiconductors, warehouse automation, and low earth orbit satellites, exceeding Wall Street's anticipated $150 billion, which unsettled investors.
- Market Reaction: The $50 billion increase over expectations prompted investors to sell shares, leading to a significant drop in Amazon's market capitalization, currently at $2.2 trillion, highlighting market sensitivity to the company's future spending and concerns about its growth potential.
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See More
