The Amazon Stock Forecast: Analysts Lower Price Targets in Reaction to Recent Earnings
After recent earnings and revenue projections fell short of expectations, and price reacted accordingly, marking the largest one-day decline in over two years, a number of analysts have lowered their price targets for Amazon stock in the next 12 months.
Analysts Adjust Amazon Stock Price Targets
In this context, some stock market analysts have adjusted their Amazon stock price targets, specifically downgrading them – including those from Redburn Atlantic, Daiwa Securities, President Capital, Morgan Stanley, and New Street Research.
- Redburn Atlantic reduced their AMZN stock price target to $225 from $250
- Daiwa Securities corrected from $220 to $219
- Resident Capital reduced it from $221 to $205
- Morgan Stanley decreased it from $240 to $210
- New Street clipped it from $245 to $225
Despite the adjustments, all analysts maintained their ‘buy’ recommendation on Amazon stock. The consensus is a ‘strong buy’ with an average price target of $223.58.
Amazon Stock No Longer ‘Top Pick’
Morgan Stanley analysts removed Amazon stock as its ‘Top Pick,’ citing disappointing results. They highlighted concerns with Amazon’s retail operations, especially around margin items and advertising.
“The mix shift toward lower average selling price and lower margin items, combined with a slower than expected ramp in high-margin advertising and cost to serve improvements is weighing on profits more than we thought.”
However, improvements in cost-to-serve metrics and the advertising business could offset the impact in the long term.
Amazon Stock Price Analysis
Amazon stock currently stands at $162.77, with a 1.46% increase in pre-market but a 14% loss over the past week. The monthly chart shows an 18.33% loss, reducing its year-to-date gains to 8.56% as of August 8.
Additionally, Amazon stock could react negatively to the company’s $4 billion investment in artificial intelligence firm Athropic, which is under investigation by the UK’s antitrust regulator.
Analysts believe in the future recovery of Amazon stocks, provided they do not suffer long-term from recent developments. Conducting thorough research before investing is crucial, as market trends can change rapidly.
Hot Take: The Future of Amazon Stock
As a crypto reader, staying informed about current developments in the stock market, like the adjustments in Amazon stock price targets, can help you make informed decisions about your investment strategy. Remember to do your due diligence and research before making any investment choices to navigate the changing market conditions effectively.
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