Amazon.com, Inc. (AMZN), headquartered in Seattle, Washington, is the world’s largest online retailer and marketplace. The company engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores. With a market cap of $2.2 trillion, its products include books, music, computers, electronics, and numerous other products. Amazon offers personalized shopping services, web-based credit card payment, and direct shipping to customers. It also operates a cloud platform offering services globally.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and AMZN definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the internet retail industry. Amazon’s dominance in theglobal marketis bolstered by its extensive reach and strategic investments in cutting-edge technology. By leveraging its scale, the company is able to offer competitive pricing and drive innovation, particularly in areas such as AI and cloud computing. Amazon’s steadfast commitment to customer satisfaction further solidifies its position as a market leader.
Despite its notable strength, AMZN has slipped 3.7% from its 52-week high of $215.90, achieved on Nov. 14. Over the past three months, AMZN stock gained 20.8%, outperforming the Dow Jones Industrials Average’s ($DOWI)8.7% gains during the same time frame.
In the longer term, shares of Amazon rose 36.8% on a YTD basis and climbed 42.1% over the past 52 weeks, outperforming DOWI’s YTD gains of 19.2% and a 26.8% surge over the last year.
To confirm the bullish trend, Amazon has traded above its 50-day and 200-day moving averages since early October.
Amazon’s strong performance is driven by its thriving ad tech business, AWS cloud growth, and strategic acquisitions like Whole Foods. The company’s data capabilities power new shopping tools and drive ad revenue growth. Amazon’s $8 billion investment in Anthropic solidifies its AI cloud computing dominance. Moreover, Amazon’s expanding digital ad opportunities, including Prime video and sports content, are expected to boost ad sales. The company also launched Amazon Haul, a low-priced e-commerce store, to compete with Chinese rivals.
On Oct. 31, AMZN shares closed down more than 3% after reporting its Q3 results. Its EPS of $1.43 topped Wall Street expectations of $1.14. The company’s revenue was $158.9 billion, surpassing Wall Street forecasts of $157.1 billion. For Q4, AMZN expects revenue in the range of $181.5 billion to $188.5 billion.
In the competitive arena of internet retail, eBay Inc. (EBAY) has taken the lead over Amazon, showing resilience with a 45.1% uptick on a YTD basis and a solid 55.7% gain over the past 52 weeks.
Wall Street analysts are bullish on AMZN’s prospects. The stock has a consensus “Strong Buy” rating from the 49 analysts covering it, and the mean price target of $237.22 suggests a potential upside of 14.1% from current price levels.
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