Why Now Is A Good Time To Buy Amazon Stock
Has the market done selling off?
With Black Friday upon us and the holiday sales period around the corner, retail shoppers are seeing a wave of sales and promotions from almost every retail store. But while shoppers are adding their discounted goods to the basket, investors are shortlisting stocks that will benefit the most from the rise in retail sales this period. This is where Amazon stock once again becomes a ‘stock to watch‘.
Amazon Stock Price Analysis
Amazon accounts for around half of all e-commerce sales on Thanksgiving and Black Friday in 2018. With this amount of market share, Amazon share price can be significantly boosted if Black Friday sales numbers beat analyst expectations.
Amazon shares have been subject to wider market sell-offs that has caused many of the largest company’s to lose billions in market cap. Amazon was the second largest company (when looking at market cap) earlier this year, with Apple coming in first.
Tuesday saw Amazon stock price end the trading day down 1.1 percent. This price represents a 27.1 percent decline from Amazon share price’s 52-week highs of $2,050 last August.
Although Amazon has experienced some challenges recently, AMZN stock has still made a 27.9 percent return year-over-year. When compared to the S&P 500’s 1.2 percent decline (year to date), Amazon no longer looks like a poor-performer. When comparing Amazon shares to the Nasdaq Composite Index (0.1 percent decline), Amazon stock still comes out as the higher performer.
Amazon has been injecting nearly all of its profits back into its business to push growth in emerging markets like Amazon’s physical-stores and streaming service. By injecting its profits into new business, some analysts are cautious when looking at Amazon’s value. In the past 10-years, Amazon stock price has increased at an annual growth rate of 44 percent annually.
Despite Amazon’s last four quarters have been the most profitable in the company’s history top-line growth has decelerated. Not to mention, Amazon has posted lower-than-expected revenues in Q3 and a weak Q4 outlook, causing investors to sell-off.
Amazon Stock Prediction
Tech stocks have been falling especially fast, with company’s like Apple, Facebook and Alphabet down since October. For investors, now is a great time to buy shares in these tech-monoliths. Although, tech shares may have not yet seen the worst of the sell-offs, so it is wise to monitor Amazon share price instead of buying.
Our analyst has given Amazon stock a 12-month forecast of $2,133.
Out analysts gives Amazon an average rating of “BUY”.