Where Will Amazon Stock Be in 1 Year?
With Amazon (NASDAQ: AMZN) shares down 11% since the start of the year, a lot of investors are wondering if it's time to buy the dip. Like many tech stocks, the diversified e-commerce giant has been hit by a souring macroeconomic outlook and possible generative artificial intelligence (AI) fatigue. Let's explore what the next 12 months could have in store.
Amazon is a massive $2.04 trillion company and it isn't done growing yet. Fourth-quarter net sales jumped 10% year over year to $187.8 billion. And while that may seem like a small growth rate, we are talking about hundreds of billions here in annual sales. Its recent top-line growth was mainly powered by a strong showing from its North American e-commerce unit, which had a particularly successful holiday shopping season.
Amazon's bottom line also continues to flourish in the post-pandemic economy. It has been about four years since CEO Andrew Jassy took the helm and shifted away from the growth-at-all-costs strategy of his predecessor, Jeff Bezos, to prioritize profitability. Jassy's approach helped Amazon expand operating income by 61% year over year to $21.2 billion in Q4, with the cloud computing division, AWS, contributing around half of the total.
Source Fool.com
