Amazon Exceeds USD 2 Trillion Market Cap: What's Next?
Amazon $Amazon.com(AMZN)$ stock jumped 3.9% yesterday to USD 193.61 mainly due to:
Amazon plans to launch a discount store to compete with Temu and Shein.
Amazon is launching its own AI chatbot soon to compete with ChatGPT, according to a Business Insider report.
Amazon just confirmed its Prime Day sale will run July 16-17.
This marks the first time Amazon has hit $2 trillion in valuation. It has now become the fifth largest company by market cap in the world, trailing behind Microsoft, Apple, Nvidia, and Alphabet.
Most of the "Magnificent Seven" companies have seen their share prices exceed their 2021 highs (Covid High). However, Amazon is considered a laggard and relatively inexpensive as its share price is only 3.77% above its 2021 high. Amazon stock has taken longer than expected to recover above its 2021 peak.
Source: Bloomberg, Tiger Brokers, 27 June 2024
I remain constructive on Amazon mainly due to margin expansion, AI-driven growth in AWS, and the burgeoning e-commerce market in India.
Fibonacci Analysis shows the resistance levels at $255.78, $238.27, and $204.73, while the main support levels include $178.34, $157.63, and $143.08. The inverted head and shoulders’ target price is $210.47.
Source: Tradingview, Tiger Brokers, 27 June 2024
Bloomberg analysts' consensus currently has a 12-month target price of USD 220.15 for Amazon, representing an upside potential of 13.7% relative to yesterday’s closing price of USD 193.61.
You may find my previous articles on Amazon here and here.
Source: Bloomberg
I will also be conducting an in-person 2H2024 US Market Outlook seminar on July 11th at 7:00 PM.
Seminar Registration Link:
https://www.itiger.com/sg/marketing/USMOS
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- thinorfat·06-27ImpressiveLikeReport