Is Amazon stock Overvalued?
With its 3-star rating, we believe Amazon's stock is fairly valued compared with our long-term fair value estimate. Over the long term, we expect e-commerce to continue to take share from brick-and-mortar retailers.
Amazon Stock is Still Very Undervalued and Shorting OTM Puts Makes Sense Here. Amazon Inc. (AMZN) reported strong free cash flow FCF margins last quarter.
Of the 63 Amazon stock analysts following the company, 95% hold a buy rating, according to FactSet. Further, FactSet data shows those analysts have, on average, set a 12-month price target of 211 for Amazon stock, according to FactSet. That implies roughly 15% upside from Amazon's opening price April 17.
| Year | Lowest price | Moderate price |
|---|---|---|
| 2024 | $237.33 | $253.94 |
| 2030 | $1,020 | $1,090 |
| 2040 | $4,880 | $5,225 |
He's following a prescribed plan available only to corporate insiders—and his recent cross-country move will reduce the transaction's tax bill. Bezos sold his shares as part of a predetermined process for selling company stock. And his recent move to Miami will ease the tax burden of that process.
As of 2024-04-18, the Fair Value of Amazon.com Inc (AMZN) is 73.23 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 181.28 USD, the upside of Amazon.com Inc is -59.6%.
Key Points. Amazon's annual revenue and operating income have more than doubled over the last five years. The company will likely profit from the tailwinds of e-commerce and the cloud market for years. Earnings per share estimates indicate a 66% upside for Amazon's shares over the next two years.
Amazon currently has an average brokerage recommendation (ABR) of 1.11, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 46 brokerage firms. An ABR of 1.11 approximates between Strong Buy and Buy.
Based on analyst ratings, Amazon's 12-month average price target is $212.21. Amazon has 15.76% upside potential, based on the analysts' average price target. Amazon has a conensus rating of Strong Buy which is based on 41 buy ratings, 0 hold ratings and 0 sell ratings. The average price target for Amazon is $212.21.
According to data compiled by TipRanks on 24 March 2023, the consensus analyst forecast for Amazon stock price was bullish. A total of 37 out of 38 analysts rated the stock as a buy, while one gave it a hold rating. The consensus AMZN stock forecast for the next 12 months stood at $136.86 a share.
What is the highest price Amazon stock has ever been?
The all-time high Amazon stock closing price was 189.05 on April 11, 2024. The Amazon 52-week high stock price is 189.77, which is 3.5% above the current share price. The Amazon 52-week low stock price is 101.15, which is 44.8% below the current share price.
Future Outlook for Amazon Stock
It took seven and a half years for Amazon to reach $1,000 from $100 and it's very possible that it could hit $10,000 between 2023 and 2025. Amazon's potential to grow could continue over time.
Unlike many companies that provide dividends to investors, Amazon does not offer dividends. While this may make it less appealing to income-focused investors, those prioritizing long-term growth may find Amazon's profit distribution approach and growth strategies advantageous.
According to the latest TipRanks data, approximately 56.67% of Amazon (AMZN) stock is held by retail investors. Jeffrey Bezos owns the most shares of Amazon (AMZN).
| Name | Equities | Valuation |
|---|---|---|
| Jeffrey Bezos 9.028 % | 937,773,965 | 169 B $ |
| Vanguard Fiduciary Trust Co. 7.423 % | 771,086,427 | 139 B $ |
| BlackRock Advisors LLC 4.648 % | 482,806,298 | 87 089 M $ |
| STATE STREET CORPORATION 3.318 % | 344,669,717 | 62 172 M $ |
Individual investors
Jeff Bezos: Owns 937,774,000 Amazon shares, or 9.02% of shares outstanding. Amazon's founder, executive chairman, and former CEO remains its largest stakeholder, with his stake in Amazon worth about $166 billion. Bezos gifted around $240 million worth of Amazon shares in 2023.
| Period | Return | Benchmark |
|---|---|---|
| 6 months | 39.44% | 15.51% |
| 1 year | 78.43% | 21.68% |
| 5 years (annualized) | 14.57% | 11.74% |
| 10 years (annualized) | 27.48% | 10.50% |
| Year | Prediction | Change |
|---|---|---|
| 2025 | $ 235.48 | 28.45% |
| 2026 | $ 302.47 | 64.99% |
| 2027 | $ 388.52 | 111.94% |
| 2028 | $ 499.06 | 172.23% |
Those gains translate to a 23.2% compound annual growth rate for Amazon compared to a 6.2% CAGR for the S&P 500 in that time. As a result, $10,000 in AMZN stock purchased 20 years ago would now be worth $645,262.
Since going public in 1997, Amazon stock has generated a total percent change of roughly 182,900%, which also incorporates the various stock splits that have happened along the way. That means that if you had invested $4,000 in Amazon in 1997, you would now have roughly $7.32 million.
What are the cons of buying Amazon stock?
But, with such great size, comes a set of unique risks. The biggest risks of investing in Amazon.com, Inc. (NASDAQ: AMZN) stock are increasing competition, profit potential uncertainty, revenue growth uncertainty, speculative valuation and share price volatility.
Is Apple stock a Buy, Sell or Hold? Apple stock has received a consensus rating of buy. The average rating score is Aaa and is based on 67 buy ratings, 30 hold ratings, and 2 sell ratings.
GOOG Stock Forecast FAQ
Alphabet Class C has 7.43% upside potential, based on the analysts' average price target. Is GOOG a Buy, Sell or Hold? Alphabet Class C has a conensus rating of Strong Buy which is based on 10 buy ratings, 1 hold ratings and 0 sell ratings.
Deutsche Bank analyst Emmanuel Rosner downgraded Tesla stock Thursday to a hold rating from a buy. Rosner also lowered the firm's price target to 123, down from 189, on the "high likelihood" of the $25,000 Model 2 getting delayed and the company's change of strategic priority to robotaxi.
Its Street-high target price of $230 implies an upside of 27.2% over the next 12 months. Analysts are overwhelmingly bullish on Amazon, and multiple brokerages listed it as a top pick for 2024. It has a consensus rating of “Strong Buy,” and is the highest-rated stock among the Magnificent 7.
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