0

Amazon Stock Price Prediction – Should I Buy Amazon Stock Now?

PUBLISHED Aug 22, 2022, 12:12:07 PM        SHARE

img
imgRashada Parveen

Should I buy Amazon stock now? Is this the question you are asking after Amazon announced somewhat satisfactory second-quarter results on July 28 after their disastrous Q1 earnings in March? If yes, you need to look at the Amazon stock price prediction.

This article will discuss the headwinds Amazon stock has been witnessing since the start of this financial year and post-pandemic. On the other hand, we will analyze where the stock price will be in the upcoming 5 to 10 years. So, let’s dive deep!

Read Also: Tesla (TSLA), Alphabet (GOOG), Apple (APPL) and Netflix (NFLX)

Amazon Profile

Amazon is the largest retail and e-commerce company, providing the best e-commerce services worldwide. Founded in 1995 by Jeff Bezos in 1994 as an e-commerce business, has thrived in artificial intelligence, cloud computing and digital streaming.

An American multinational corporation can lead the digital world space in the arena of e-commerce, artificial intelligence and cloud computing. Moreover, it has ventured into the Cryptocurrency and Automotive industry by making breakthroughs in its adventures and business ventures.

Stock Metrics Values
Market Cap 456.40 B
P/E Ratio 13.92
52-week Range $ 154.25 - $384.33
ROE (TTM) 9.43%
Beta 1.33

Amazon has also ventured into cryptocurrency by introducing its cryptocurrency of Amazon Coin. Although it does not accept any cryptocurrency as a part of its payments systems, it has shown interest in taking the Non-fungible Tokens (NFTs) and other cryptocurrencies in the near future.

The business is as strong as a rock, stood firm during the Covid-19 period, and showed robust earnings even when the stock market was engulfed in pessimism and was at its lowest level. It is too good to ignore right now.

Read Also: Visa (V), Bank of America (BAC) and Meta Platforms Inc. (META)

Amazon Stock Price

Amazon's stock price prediction is very optimistic and robust by most analysts due to the resilient earnings potential of this e-commerce giant and the massive success of its Amazon Web Service (AWS), which offers cloud-computing services to businesses. It is now leading the market in cloud computing and Amazon Web services.

Amazon Stock Splits

Amazon was listed on NASDAQ in 1997 and started trading its shares globally under the ticker symbol of AMZN. Since then, four Amazon stock splits have occurred. The first stock split happened in 1998 (2-for-1 stock split).

There was two stock splits just one year after the first stock split occurred. In 1998, the second stock split was 3-for-1 in January, followed by another 2-for-1 stock split in September.

It took Amazon more than two decades to get its fourth stock split in June 2022. It was the most extensive stock split by Amazon ever (20-for-1). The purpose of stock splitting was to make the stock affordable for small investors.

Amazon First-Quarter Earnings

Currently, Amazon stock is being traded for $138.23. Due to the market uncertainty, Russia-Ukraine War, Inflation and Supply-chain disruptions, the stock has bottomed at 18.88% year to date.

Pandemic where proved a curse for many businesses bringing an end to some companies, Covid-19 ear proved a blessing for this e-commerce business when people were shut down to their homes, and they scrolled all day buying products at their doorsteps.

Amazon Second Quarter Earnings

Amazon made huge revenues during the isolation period, and its earnings reached as high as 220 %, reaching $108.5 billion in sales. During 2020. The net income was reported at $21.33B, higher in 2021. It was reported at $33.364 B. Until now, its year-over-year profit in 2022 has declined 60.57% for the second-quarter earnings ending June 30. Amazon sales dropped 4% in the second quarter. The Rivian investment proved a poor decision by the Amazon and suffered a loss of 3.9 billion loss in the second-quarter.

Stock Metrics Values YoY Change
Revenue 121.23 B 7,21% up
Net Income -2.03B 126.07% down
Diluted EPS -0.2 126.32% down
Net Profit Margin -1.67% 124.27% down

Amazon Stock Price Prediction

Amazon's stock price is expected to reach $500 by the end of 2025. It will reach the three-digit number and cross the price of $2000 by 2030. Amazon estimates the third quarter as an excellent health care adventure. Moreover, the Rivian automation shows somewhat negative results.

Read Also: Sempra Energy Stock (SRE), Edison International Stock (EIX), NRG Energy Stock and Dominion Energy Stock (D)

The Bottom Line

The bottom line is a business model as innovative as Amazon and as resilient as it has proved until now is not a gamble. It is a strong buy if you have an investment outlook of at least ten years in your mind. In a resilient model, one bad year or a quarter does not make sense for the long-term investment. The Amazon stock price prediction is strong and is expected to reach $2000 by 2030. So, it is high time you buy Amazon stock now.

Read Aslo: What Will Microsoft (MSFT) be Worth in 10 Years?, NextEra Energy Stock (NEE) and Is BBY A Buy or Sell? Is Best Buy still the Best Buy For Investors?

AMZN, Big Buy

Amazon.com, Inc.
Return: -30.64%

AMZN, Big Buy

Return: -30.64%


Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
Upcoming Economic news Releases
Image

Things That Could Impact the Market Next Week

Looking For A Modest Pullback
Image

Stock Market Commentary

Where Are We In The Cycle?
Image

A reminder about what empirical research tells us about business cycle phases and asset class returns.

Playing the housing backlog theme
Image

While the economic outlook in Zimbabwe remains uncertain on the back of local and global headwinds, Piggy believes that the are indeed pockets of opportunity in certain sectors.

A golden opportunity
Image

Piggy has noted with interest that the norm amongst most investors all over the world is that they tend to buy and hold gold during periods of uncertainty.

Form Gold Investment Clubs!
Image

The Reserve Bank of Zimbabwe has now introduced gold coins to the market with a strategic intent of boosting savings and investments in the broader economy.

The Collaborative Economy
Image

The collaborative or sharing economy is an emerging phenomenon that is shaping the cultural, economic and social landscape of the modern world.

Fed Minutes were Not as Dovish as Initially Read
Image

The sell-off in European bonds continues today.

StockBossUp - State of Wealth Creation
Image

Drafting on StockBossUp is ramping up. Here we will discuss how drafted teams are performing

Mercury General (MCY) Cuts Its Dividend
Image

Another Dividend Champion lost its status two weeks ago. Mercury General (MCY), the insurance company, cut its dividend by 50% on August 2, 2022, after a 35-year streak.

Markets Look for Direction
Image

The biggest development today in the capital markets is the jump in benchmark interest rates.

Market Musing 8-16-2022, Can the US Market's continue this 8 week upside rise?
Image

Where do we go from here? The US Markets are rising on slowing inflation and the assumption that the Fed will slow down its aggressive rate hike cycle.

BITWISE 10 CRYPTO INDEX FUND (OTC: $BITW)
Image

AN ETF TRACKING THE 10 LARGEST CRYPTOCURRENCIES WITH CONTINUED BEARISH SENTIMENT

China Disappoints and Surprises with Rate Cut
Image

Equities were mostly higher in the Asia Pacific region, though Chinese and Hong Kong markets eased, and South Korea and India were closed for national holidays.

The Top 3 Dividend Aristocrats Now
Image

When it comes to finding ways to compound wealth over time, we believe the best way is to buy high-quality dividend stocks, reinvest dividends, and hold them for the long-term.

IRS Audits Explained
Image

As an Investor, Make Sure You Know Your Tax Liability!

Will Meta Stock Go Up? Panic, or not to Panic, That is the Question
Image

Will Meta stock go up? Many investors have become skeptical about the future of Meta Platforms due to the continuous loss of share price and advertisement revenue.

Due For A Pull Back
Image

Stock Market Commentary

Opening a New Credit Card Helps Improve Credit Score
Image

A ratio of less than 30 percent of credit to utilization is ideal.

Cisco Systems: Time To Buy
Image

The bear market is making retail and professional investors nervous, but the market will not be down forever.