Amazon.com, Inc AMZN is the talk of the town in the financial world as it garners widespread attention from analysts, who have collectively named it the leading pick for 2024.
A Standout Pick: On a single day, Amazon received top pick accolades from five different analyst firms, signaling a resounding vote of confidence for the e-commerce titan’s potential in the coming year, as reported by CNBC.
The Analyst Favorites: A slew of prestigious analyst firms, including Goldman Sachs, Wells Fargo, BofA, Citi, Evercore, Berstein, Roth MKM, Baird, RBC Capital, Telsey, Wedbush, Rosenblatt, Needham, Wolfe Research, Raymond James, Canaccord Genuity, Satori Fund, Piper Sandler and D.A. Davidson, have all named Amazon as their top bet for 2024.
In light of this overwhelming sentiment, CNBC’s “Squawk On The Street” featured insights from esteemed business and technology reporter Kate Rooney, who delved into the reasons behind this unanimous groundswell of support for Amazon.
A Driving Force: One factor driving analyst optimism is the resurgence of Amazon Web Services (AWS). The growth spurt is being fuelled by amplified cloud spending and steadying cloud revenue, as highlighted by Rooney.
AI Prowess: Another common theme among analysts is that Amazon’s prowess in the AI sphere is being undervalued. Several analysts contend that Amazon is at the forefront of companies poised to steer the next phase of AI commercialization.
Operational Efficiency: A third aspect emphasized by several analysts is Amazon’s operational efficiency, anticipated to bolster gross margins. Furthermore, the impending advertising opportunities are poised to significantly bolster top-line growth in 2024, according to Rooney.
Dubbed the “everything stock” by Wedbush, and even suggested as a defensive play by Satori Fund during times of economic downturn, Amazon is unquestionably a darling of analysts and investors alike.
For Context: TikTok Is Reportedly Paving The Way For A Major E-Commerce Expansion In The U.S With The Target Of Reaping $17.5 Billion In Revenue
AMZN Price Movement: Notably, Amazon shares have soared by approximately 75% over the past year, painting a stellar performance trajectory. On Thursday afternoon, the stock reflected a 2.15% decline, trading at $145.28, as per insights from Benzinga Pro.
Image Source: Amazon.