Tech titans, including Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Meta Platforms (NASDAQ:META), continue to trim costs despite the rapid rebound of their stock values in 2023. According to a report from The Wall Street Journal, these tech behemoths are still downsizing their workforce, albeit in smaller numbers, as they maintain stringent cost controls.
The report emphasizes that these tech giants have eliminated several hundred roles recently. Moreover, the AI (Artificial Intelligence) revolution has led them to reallocate resources towards AI-related projects.
Thanks to tight cost control and investments in AI, the stocks of AMZN, GOOGL, META, and MSFT have registered significant year-to-date gains (see the graph below). Moreover, dozens of analysts maintain a bullish outlook on their prospects. The rally in their share prices prompts the question: which of these stocks has more upside potential?
Amazon Stock Offers Higher Upside Potential
TipRanks’ Stock Comparison tool shows that all these tech stocks sport a Strong Buy consensus rating. Moreover, they carry an Outperform Smart Score. What stands out is that shares of e-commerce giant Amazon offer a higher upside potential among these stocks.
Wall Street analysts’ average AMZN stock price target of $175.75 implies 20.11% upside potential from current levels. This is higher than META, GOOGL, and MSFT’s upside potential of 16.71%, 13.73%, and 8.76%, respectively.
Is It a Good Time to Buy Amazon Stock?
Amazon stock has increased by over 74% year-to-date. Despite the significant appreciation, every analyst covering Amazon stock recommends buying it. This implies that AMZN stock is a Buy based on analysts’ consensus ratings.
Its aggressive investments in AI and focus on integrating generative AI capabilities into its cloud offerings augur well for growth. In addition, the strength of its advertising business, reduction in delivery time, and focus on lowering costs position it well to deliver solid financials in the coming quarters.
The tech giants maintain strict control over costs and invest in AI, keeping analysts upbeat. While AMZN, META, MSFT, and GOOGL stocks have delivered solid year-to-date gains, analysts’ average price target suggests AMZN stock offers a higher upside potential among these companies from current levels.