What will happen to Amazon stock? Most analysts rate the stock as “buy”

Is there more to it than just retail and online streaming?

And much more. Seattle-based Amazon is the world’s biggest name in e-commerce and the second-largest player in streaming.

But the group’s other activities include deliveries, logistics and Amazon Web Services (AWS).

This powerful subsidiary offers centralized cloud computing services not only to businesses, but also to academic institutions and governments. Amazon also owns Whole Foods, the luxury supermarket chain.

How did Amazon start?

According to an oft-told story, Amazon started almost exactly 30 years ago in the garage of its founder and CEO Jeff Bezos. But almost from the beginning, Amazon has been the subject of controversy, despite its mission to be “the most customer-centric company on the planet.” The focus of criticism is the online giant’s impact on physical retail and the environmental damage resulting from its deliveries and packaging.

Is retail still driving growth?

Retail may still be the main source of revenue, but AWS already controls about a third of the cloud computing market and its expansion has accelerated recently.

As a result, AWS could become larger than the retail division, according to Werner Vogels, Amazon’s chief technology officer.

Has the stock price ever suffered?

Since its IPO in 1997, the stock price has soared by 217,256 percent. However, the stock crashed during the dot-com bubble burst in 2000, but Amazon managed to survive and thrive, unlike many of its peers. In 2022, the stock also fell deeply, amid the belief that the company would not be able to maintain the progress it made during the pandemic.

When did the stock price recovery begin?

In 2023, the major US tech stocks have regained the affection of investors: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. They have been dubbed the “magnificent seven” thanks to optimism about the benefits to be gained from exploiting generative AI. This year, the fortunes of the magnificent seven have been more mixed: Nvidia continues to climb the rankings, while Tesla has suffered a setback.

Is Amazon Stock Worth Buying?

Most analysts rate the stock a “buy.” The average price target is $218, up from $197 currently. There has been speculation lately that Amazon could pay a dividend or use excess cash to buy back its shares, which would boost the price.

The cash mountain could reach $100 billion this year.

However, Amazon CEO Andy Jassy appears reluctant to end the practice of reinvesting in the business, rather than distributing payments to investors. Chief Financial Officer Brian Olsavsky sees “plenty of opportunities” to invest capital that would generate “significant returns.”