Amazon Price Prediction is Revised LOWER to $165

Amazon Price Prediction is Revised LOWER to $165

Amazon Price Prediction: AMZN Price Outlook is Positive.

Amazon Stock Forecast after Split: 12 Month Post Split Price Target is revised higher to $165

4 Analysts

AMZN Price and Performance Chart

After falling nearly 20% in just 10 days in June, AMZN is up again marginally over the last 10 days.

  • Between January 1st, 2022, and April 27th, 2022, Amazon Outperformed NASDAQ by 3% points.
  • Between April 28th and June 10th, Amazon underperformed NASDAQ by 13% points.
  • Between June 11th and June 22nd, Amazon Outperformed NASDAQ by 3% points.

Crowd’s Voice

Lion Trades on Twitter: “Inspite of all the short term bullishness in the market, I think most of these will go down super clean. $AMZN rising wedge, target 102 / Twitter”

Inspite of all the short term bullishness in the market, I think most of these will go down super clean. $AMZN rising wedge, target 102

Amazon Price Prediction: Technical Recommendation

Amazon Stock: Latest Video

YouTube video

Amazon Stock Price Prediction: Google Search Trend

Google search volumes have fallen after peaking 2 days ago.

Amazon Stock Price Prediction: Latest News

  • Amazon saw a 45% increase in employee participation in its Career Choice program. This was designed by amazon to allow its employees to build skills for career success. They have continued to expand it.
  • Supreme Court has overturned Roe v. Wade and its implications are visible in different sectors. Amazon has pledged to pay its employees’ travel costs should they choose to have an abortion. Many new age investors care about the social justice stance a company takes before investing in it.
  • Last week, in MARS technology conference in Las Vegas, Amazon and other tech companies showcased their advancements in robotics. Amazon’s famous AstroRobot was a part of this presentation. Amazon is considering making such technology more mainstream in the future.

Amazon Stock Forecast after Split: 12-Month Forecast

Price Target
Average Amazon Stock Forecast 2022$165
Truist Financial$175
JP Morgan Chase$200
BMO Capital$172
Goldman Sachs$170

Kaushik on Twitter: “$AMZN Citi – Comments on New CEO of Worldwide Amazon Stores, ‘can improve operating margins’ / Twitter”

AMZN Citi – Comments on New CEO of Worldwide Amazon Stores, ‘can improve operating margins’

Amazon Stock Forecast: Effects of the Stock Split

When Amazon’s shares had split, every shareholder got 19 additional shares for each share owned. The value of their shares remained the same. At that time, Amazon shared had risen in value. This was done to reduce the price and invite more retail investors. As a result of this, during the month of June, Amazon shares are down by -9.4%. Immediately after the split, the stock was up by 2%.  This would mean it might be entered into Dow Jones Industrial average too. The market had a positive sentiment towards the split and even though the prices are down, this is what amazon might have needed to gain momentum during inflationary times. This invites more investors and the talk of buybacks may help set the correct tone between shareholders and the management.

Amazon Stock Forecast: Recession worries

The talk of a recession has soared over the last few weeks. In particular, after the Fed increased rates twice in the last 6 weeks.

Screenshot 2022 06 23 at 4.58.31 AM

Consumer spending data published by Barclays for May suggests that spending has risen just 10% in May compared to 20% on an average for the rest of the months.

Another report by Bank of America analysis of their credit and debit card data suggests that the lowest income group was the most impacted in May. Further, they also reported that while spending on services grew in May, spending on Goods (Inflation adjusted) was lower than in May 2021.

June will be even lower as fuel prices have risen further and the Federal Reserve has increased interest rates. This is likely to impact Amazon negatively

Amzn Stock Forecast: Bull Case

  • Profitable Cloud Business: – It is true that Amazon’s major revenue comes from e-commerce business, but the cloud business (Amazon Web Services) is quickly catching everyone’s attention and is becoming the most profitable one for Amazon Inc. AWS revenue in 2021 came at $62.2 billion – an increase of 37% YoY. It could soon become a $100 billion revenue stream.
  • New Partnerships with Rivian, Meta, and Other Companies– What builds confidence in AWS is its new line of customers which includes Rivian, Under Armour, Goldman Sachs, Meta Platforms and many other such marquee customers. It speaks volumes of demand for cloud-based business and AWS is giving tough competition to Google. AWS generated $18.5 billion operating profit in 2021, an impressive 37% increase YoY.
  • Advertising Sector – Next gem in the making is the advertising sector for Amazon. Amazon for the first time split up advertising revenue in the latest quarter earnings. It reported $9.7 billion in revenue in the fourth quarter, an increase of 33% YoY. Amazon provides advertising services to wide segments of customers including sellers, suppliers, customers etc. Live sporting events can add significantly to the revenue in coming years as Amazon has recently done 11 years agreement with NFL to telecast Thursday Night Football.

Amazon Stock Forecast: Bear Case

  • Persistent Labour Issues- Recently Retail, Wholesale, and Department Store Union (RWDSU) accused Amazon of interfering illegally in a union election in Alabama. It is accused that Amazon officials have removed union literature from its break room and limited access. It may be true or false, but the fact is that these unfair treatment accusations against Amazon are not new and it appears that Amazon is trying to hinder unionization rather than improving relations with labor. It could hurt Amazon’s business in the future.
  • Lower Operating Margins in E-Commerce Business- Amazon’s e-commerce business reported $407 billion in revenue for the 2021 calendar year. But, despite good top-line growth operating margin has decreased YoY. In North America, the operating margin was 3%, representing a 1% decline from 2020. The international segment reported an operating loss margin of negative 1% in 2021, compared to a 1% positive in the year prior. This decline in operating profit was due to labor supply issues and supply chain disruptions. These are expected to continue in 2022.
  • Declining Cash Flow – As a matter of fact, Amazon’s trailing 12-month cash flow decreased 30% YoY to $46.3 billion and free cash flow has come to a negative $9.1 billion for the past 2 months ended 31 December 2021. Free cash flow was positive at $31.0 billion for the trailing 12- months ended 31 December 2020.

Read: DWAC Price Prediction

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Vineet Agarwal

Amazon Price Prediction: Post Split, Target Price Revised to $170

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