Amazon stock (NASDAQ: AMZN) has taken holders on upward climb over this past 12 months, and has been one of the better performers in the index. The stock has climbed 32.8% in the past 12 months and 19.3% since the start of the year.
Having taken a 20% retracement in the month following July highs, the shares have bounced off $160, looking intent on retesting that $200 ceiling.
Amazon Share Price Targets
Analysts have set a 12-month price target for Amazon with an average expectation of $223.58, ranging from a high of $251 to a low of $186.
The current consensus average target suggests a potential increase of 37% from the most recent trading price.
Our View: You would be wise to consider the views of the analyst community in conjunction with the fundamentals surrounding the company to properly determine a value for the stock that you feel is appropriate.
At the upper end of analysts estimates it would be easy to get carried away with the potential gains on show, but the flipside is that these targets can shift within the blink of an eye and that the view of analysts is very dynamic.
If you are considering swing trading, or day trading Amazon shares that is a separate consideration, but for those planning for the long haul, fundamental analysis is king.
Amazon Inc – The Basics Driving The Business
Amazon.com, Inc. is a company that sells a wide range of products and services. They offer both items they’ve bought to resell and those from third-party sellers. Amazon has three main business areas: North America, International, and Amazon Web Services (AWS).
The company sell to customers online and in physical stores, concentrating on product variety, price, and ease of purchase. They can be reached through websites, mobile apps, Alexa, various devices, streaming services, and in-person store visits. Amazon makes and sells electronic devices such as Kindle e-readers, Fire tablets, Fire TV, Echo smart speakers, and Ring and Blink security cameras, along with creating their own media content.
AWS provides technology services to a broad array of clients, including start-ups, public agencies, and educational institutions. These services cover computing, storage, databases, analytics, machine learning, and more.
For the trailing twelve months (TTM), Amazon’s revenue was $590.74 billion with a net income of $37.68 billion. The company was founded in 1996 and employs about 1.52 million people.
