Analysts bullish on Amazon’s potential for growth
- TD Cowen analyst names Amazon’s stock as top pick for 2024
- Analysts expect Amazon’s stock to continue to rise
- Amazon’s potential for revenue growth in AWS and advertising
- Wall Street may be underappreciating Amazon’s advertising opportunity
- AWS poised to benefit from enterprises shifting workloads to public cloud
- Analysts raise price targets for Amazon’s stock
Amazon’s stock has seen a 75% surge this year, and analysts believe the momentum will continue into 2024. TD Cowen analyst John Blackledge named Amazon’s stock as his top pick for next year, citing the company’s margin trajectory and potential revenue growth in its Amazon Web Services (AWS) and advertising divisions. Blackledge expects Amazon to generate $58 billion in operating income by 2024, driven by high-margin AWS and advertising contributions. He also believes that Wall Street may be underestimating the company’s advertising opportunity, especially with the launch of ads on Prime Video and the option for users to opt out of ads for a fee. Additionally, Blackledge sees AWS benefiting from enterprises shifting workloads to the public cloud and the potential for generative AI to drive additional revenue. Other analysts, such as Bernstein’s Mark Shmulik, also express optimism about Amazon’s long-term growth and operating income potential. As a result, price targets for Amazon’s stock have been raised. Currently, Amazon’s stock is up 1.6% in morning trading on Thursday.
Public Companies: Amazon.com Inc. (AMZN)
Private Companies:
Key People: John Blackledge (TD Cowen analyst), Mark Shmulik (Bernstein analyst)
Factuality Level: 7
Justification: The article provides information about Wall Street analysts’ expectations for Amazon’s stock in 2024, including revenue projections and potential advertising opportunities. The information is presented without any obvious bias or personal perspective. However, the article lacks in-depth analysis and supporting evidence for the analysts’ claims, which lowers its factuality level.
Noise Level: 3
Justification: The article provides some analysis of Amazon’s stock and potential future growth, but it lacks evidence, data, and actionable insights. It also includes irrelevant information about other analysts and unrelated news about AMD.
Financial Relevance: Yes
Financial Markets Impacted: Amazon.com Inc. shares
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the positive outlook for Amazon.com Inc. shares and the potential for growth in its operating income, particularly in its Amazon Web Services cloud-computing unit. The analysts expect the stock to perform well in the coming years, but there is no mention of any extreme events or their impact.
www.marketwatch.com 
