Analyst Affection
Amazon.com, Inc AMZN has attracted substantial attention in the first week of 2024, as it has emerged as a favorite for numerous analysts.
Groundbreaking Acclaim
What You Need to Be Informed: Wednesday witnessed an exceptional occurrence, with five different analyst firms declaring Amazon their top pick for 2024, as reported by CNBC.
Analyst Enthusiasm: Amazon’s selection as the best bet for the new year was revealed by an array of prestigious analyst firms, including Goldman Sachs, Wells Fargo, BofA, Citi, Evercore, Berstein, Roth MKM, Baird, RBC Capital, Telsey, Wedbush, Rosenblatt, Needham, Wolfe Research, Raymond James, Canaccord Genuity, Satori Fund, Piper Sandler, and D.A. Davidson.
Insights and Optimism
CNBC’s business and technology reporter, Kate Rooney, shared insights into why Amazon was resoundingly picked by numerous firms as their high-conviction play for 2024 on CNBC’s “Squawk On The Street.”
One of the consistent drivers of analyst optimism is the reaccelerating growth of Amazon Web Services (AWS) due to increased cloud spending and stabilizing cloud revenue, according to Rooney.
Another commonly cited theme among analysts is that Amazon’s exposure to AI is undervalued. Several analysts argued that Amazon is among the best-positioned companies to influence the next commercialization phase of AI, Rooney reported.
Lastly, several analysts highlighted Amazon’s operating efficiency, which is expected to improve gross margins, as well as the upcoming advertising opportunity, which could significantly contribute to top-line growth in 2024, according to Rooney.
Wedbush referred to Amazon as the “everything stock” this week, while Satori Fund suggested Amazon could even act as a defensive play in portfolios, as the company tends to gain market share during recessions.
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Stock Performance
AMZN Price Action: Amazon shares have surged by approximately 75% in the last year. The stock was trading down 2.15% at $145.28 on Thursday afternoon, according to Benzinga Pro.
Photo: Courtesy of Amazon.
