Amazon.com Inc. Stock Drops -5.30% This Year; What Analysts Say Next

Amazon's stock price dropped by 2.64% in the last trading session, but analysts still recommend buying the stock.

In the most recent trading session, Amazon.com Inc. (NASDAQ: AMZN) experienced a high volume of 50.2 million shares being traded. The company's beta is currently measured at 1.25. The stock closed at $128.21 per share, representing a decrease of -$3.48 or -2.64% at the end of the trading day. This places Amazon's market valuation at $1,276.08 billion. The closing price of AMZN's stock is at a discount of -14.32% from its 52-week high of $146.57 and indicates a premium of 36.49% from its 52-week low of $81.43. Looking at the average trading volume for the company over the past 10 days, there was an average volume of 56.55 million shares. If we extend this period to 3 months, the average trading volume becomes 58.77 million shares.

When it comes to analyst recommendations for Amazon.com Inc. (AMZN), the consensus is that it is a Buy, with an average rating of 1.80. Out of the 54 analysts covering the stock, 2 rated it as a Sell, 7 recommended an Overweight rating, 3 suggested a Hold, and 42 see it as a Buy. None of the analysts advised it as Underweight. The company is expected to have an earnings per share (EPS) of $0.32 in the current quarter.

Although AMZN experienced a decline of -2.64% in the last session, it has remained in positive territory over the past five days. On Monday, 07/31/23, the stock reached its highest point of the week at $128.21, adding 4.23% to its value on that day. Year-to-date, Amazon.com Inc.'s shares have seen a change of 52.63% in performance, and over the past 5 days, they have moved 0.05%. In the past 30 days, the stock has shown a performance of -1.54%.

Wall Street analysts have set a consensus price target of $145.29 for AMZN, indicating a potential rise of 11.76% from its current value. The low price target for the stock is projected to be $99.00, while the high target is set at $220.00. This means that if the stock reaches the projected high, its price would drop -71.59%, while reaching the targeted low would result in a gain of 22.78% from its current value.

Comparatively, Amazon.com Inc. has performed better than other players in its industry. The company has added 24.32% of value to its shares in the past 6 months, demonstrating an annual growth rate of 118.31%, while the industry's growth rate stands at 20.50%. Additionally, the company has raised its revenue forecast for fiscal year 2023, estimating a 260.00% increase in revenue for the current quarter and a 28.60% increase in the next quarter. However, this year's revenue growth is projected to fall -0.70% compared to the previous financial year.

According to estimates from 37 industry analysts, Amazon.com Inc. is expected to generate $119.57 billion in revenue for the current quarter. For the next quarter, ending in September 2023, 36 analysts estimate the company's revenue to be $125.69 billion. In the same quarters a year earlier, the company posted sales of $121.23 billion and $127.1 billion, respectively. Analysts anticipate a -1.40% decrease in sales for this quarter and a -1.10% decrease for the next quarter.

When examining the company's earnings over the past 5 years and projecting for the next 5 years, it is evident that Amazon.com Inc. has experienced an annual earnings growth rate of -26.00% during the past 5 years.

Investors are confident that Amazon.com Inc. will announce better current-quarter dividends in its upcoming quarterly report in September, despite facing challenges related to its mounting debt.

The top institutional holder of AMZN is Vanguard Total Stock Market Index Fund, which holds 263.59 million shares worth $22.14 billion. As of December 30, 2022, it accounted for 2.57% of the company's outstanding shares.

The second largest institutional holder is Vanguard 500 Index Fund, with approximately 205.18 million shares held as of December 30, 2022. This represents a hold over 2.00% of outstanding shares, with a total value of $17.23 billion.