Where Will Amazon Stock Be in 3 Years?
With shares down almost 20% in the last 30 days, Amazon's (NASDAQ: AMZN) AI-powered rally is beginning to falter. There are also concerns that a potential economic slowdown could hurt its consumer-driven business model. Let's explore how these near-term challenges could affect the stock's performance over the next three years and beyond.
It is impossible to predict the future, but investors should pay attention to macroeconomic factors that could affect their thesis. For Amazon and other consumer-goods-focused companies, the main near-term threat could be a recession, which many economists see as more likely after the July unemployment rate (4.3%) came in higher than expected.
When people lose their jobs, they have less money to spend on online shopping, which leans toward discretionary items over necessities. However, the good news is that Amazon's customers still look strong.
Source Fool.com
