- Febbraio 1, 2023
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
Amazon is in a massive rut right now, with shares hovering 46% off peak levels. The massive layoff was far-reaching, but for a firm on the cutting edge of automation technologies, I view Amazon as a prime candidate (do forgive the pun) to improve its operational efficiency, even as the impact of the recession worsens over the coming months. I am bullish on AMZN stock.
As retail sales slide, while AWS hits a bit of a road bump, Amazon can continue investing in intriguing and innovative concepts as its smaller peers go into cost-cutting/pause mode. Amazon doesn’t need to hit the pause button. If anything, the recession is a chance to step back and re-evaluate where the firm can look to disrupt rivals.
Amazon’s still a disruptive force and seems poised to go after its competitors while they’re down and out from the tech sell-off. Amazon’s poised to open its “Buy with Prime” service later this month. The service, which provides a terrific value proposition to merchants and shoppers, could apply considerable pressure to e-commerce firms that empower small- and medium-sized businesses to open their own digital storefronts.
With massive fixed investment in fulfillment, “Buy with Prime” will be a tough, if not impossible, service to match. The service is unlikely to do much to alleviate looming recession pressures. However, I think it’ll be a growth engine to watch longer term.
At writing, AMZN stock trades at 93.1 times trailing earnings, which is surprisingly low compared to the catalog and internet order retail industry average of over 110 times.
What is the Price Target for AMZN Stock?
Wall Street still has a “Strong Buy” rating on Amazon. The average AMZN stock price target of $131.37 implies 28.5% upside potential from its current price.
