It’s a time-honored tradition that happens every year. As we approach the end of 2023, projections for holiday spend will gradually emerge, shaping a storyline about the robustness of spending during this season and the overall well-being of consumers.
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Given the importance of such metrics to Amazon (NASDAQ:AMZN), during this period, Monness’ Brian White, an analyst ranked in the top 1% of Street experts, anticipates the stock to “dance to the beat of these data points.”
The trends seen so far point to a healthy backdrop, particularly where Black Friday and Cyber Monday are concerned. Online spending has been “largely constructive,” although White also says the “potential for pull forward purchases to sabotage last minute demand remains a risk.”
According to Adobe Analytics, during Cyber Week (Thanksgiving through Cyber Monday), U.S. online spending reached $38 billion, amounting to a 7.8% year-over-year increase. For the full holiday season (November 1-December 31), Adobe Analytics estimates online spending will increase by 4.8% compared to the same period a year ago to reach $221.8 billion.
As for Amazon, the company has not shared any specific sales data from Cyber Week, but has made some reassuring noises, claiming the event was its “biggest ever compared to the same 11-day period ending on Cyber Monday in previous years.”
Getting a little deeper into the details, the ecommerce giant said that, across the globe, more than one billion items were purchased on Amazon during the period with shoppers realizing almost 70% more in savings on Amazon during the 11 days of deals vs. the year-ago period.
While all these points are no doubt important and have the potential to impact the stock’s performance, White thinks the company has “more enduring forces at work.” These include a “tailwind from bold efficiency initiatives implemented this year, combined with the pursuit of significant, new opportunities across the company’s portfolio.”
So, down to the nitty-gritty, what does this all mean for the stock? White reiterated a Buy rating, backed by a $170 price target. Should the figure be met, a year from now, investors will be sitting on returns of 11%. (To watch White’s track record, click here)
White is just one of the many Amazon bulls on Wall Street. In fact, Amazon is that rare beast – a stock with plenty of coverage where everyone is in agreement. It has garnered 43 analyst reviews over the past 3 months – all Buys – naturally making the consensus view here a Strong Buy. The average target currently stands at $180.67, implying the shares will deliver returns of ~18% over the one-year timeframe.(See Amazon stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
