The first week of 2024 is witnessing Amazon.com, Inc (AMZN) soar to the top echelons of Wall Street’s preference, as a bevy of analysts have conferred the ecommerce giant with the distinguished accolade of being their top pick for the year.
Wall Street’s Embrace: On a single day this week, five disparate analyst firms proclaimed Amazon as their favored contender for 2024, according toCNBC.
Leading Lights: A constellation of 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, have all placed their bets on Amazon for the new year.
On CNBC’s “Squawk On The Street,” CNBC business and technology reporter Kate Rooney shed light on the reasons behind this unanimous praise for Amazon by a multitude of firms.
Riding the Clouds: One of the primary drivers of analyst enthusiasm is the resurgent growth of Amazon Web Services (AWS) propelled by augmented cloud spending and stabilizing cloud revenue, reported Rooney.
AI’s Untapped Potential: Analysts have also underscored that Amazon’s AI exposure is undervalued and asserted that the company is adeptly positioned to steer the forthcoming commercialization phase of AI, Rooney added.
Efficiency and Expansion: Finally, several analysts lauded Amazon’s operational efficiency, forecasting an uptick in gross margins, alongside a lucrative advertising opportunity that is anticipated to significantly bolster the top-line growth in 2024, Rooney elucidated.
Wedbush bestowed Amazon with the moniker “everything stock” this week, while Satori Fund proposed that Amazon could even serve as a defensive play in portfolios, reasoning that the company tends to accrue market share during economic downturns.
For Amazon’s potential threats, read next: Threat For Amazon? TikTok Planning Massive US E-Commerce Expansion With $17.5B Revenue Goal: Report
Share Performance: Amazon’s shares have soared by approximately 75% in the last year. The stock was trading at $145.28, experiencing a marginal decline of 2.15% on Thursday afternoon, according to Benzinga Pro.
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