Shares of online retail and cloud computing leader Amazon (NASDAQ:AMZN) are among the most-discussed stocks on the social media platform Reddit. While AMZN stock has risen over 57% year-to-date, Wall Street analysts’ average price target suggests considerable upside potential for AMZN stock from current levels.
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With this backdrop, let’s understand what’s in store for AMZN shareholders in the future.
Is Amazon Stock a Good Buy Right Now?
While Amazon stock has gained quite a bit, analysts see further upside potential over the next 12 months. The company is focusing on encouraging its users to make repeat purchases on its e-commerce platform. It offers personalized recommendations by leveraging customer order histories to drive recurring purchases.
Further, Amazon is engaged in a cost restructuring initiative to boost profitability by reducing operational expenses. Moreover, the company is emphasizing advancing its AI (artificial intelligence) strategy. It is integrating AI into AWS’ (Amazon Web Services) offerings to maintain its dominant position in the cloud space. Further, Amazon has collaborated with Anthropic to step up its AI initiatives, which augurs well for future growth.
Given the significant growth opportunities ahead, Wall Street analysts are bullish about AMZN stock. It has received 40 Buy and one Hold recommendations for a Strong Buy consensus rating. Moreover, analysts’ average price target of $176.18 implies 33.14% upside potential from current levels.
Bottom Line
Amazon’s emphasis on cost reduction and driving operational efficiency is expected to support its earnings growth in the coming years. Moreover, Amazon’s advertising services are witnessing strong engagement, leading to solid revenue growth. Additionally, its cloud division has displayed signs of stability, with growth in this sector likely to accelerate as enterprise spending improves and AI becomes an integral part of its offerings.
In summary, this trending Reddit stock is poised to deliver solid growth, as reflected by the Strong Buy consensus rating.
