Quick Highlights:
- Amazon (AMZN, Financial) downgraded due to competitive pressure and valuation concerns.
- Analyst consensus remains positive with a notable potential price increase.
- Moderate upside anticipated based on GuruFocus GF Value estimation.
Amazon (AMZN) faced a recent analyst downgrade from "buy" to "hold" by Simple Investment Ideas, with concerns centering around competitive challenges posed by Google's innovative Gemini initiative, alongside apprehensions about Amazon's current market valuation. With a market cap towering at $1.96 trillion and a P/E ratio standing at 33, the retail and tech giant could encounter significant obstacles in its future strategies.
Wall Street Analysts Forecast
In a detailed analysis of projections from 67 analysts, the average price target for Amazon.com Inc (AMZN, Financial) is pegged at $255.46, with the potential for reaching a high of $306.00. Conversely, the lower end of the spectrum sits at $200.00. Impressively, this average target suggests a robust upside of 46.05% relative to the current trading price of $174.91. Investors seeking a comprehensive breakdown can explore more on the Amazon.com Inc (AMZN) Forecast page.
Analyzing the broader consensus from 73 brokerage entities, Amazon.com Inc's (AMZN, Financial) recommendation average currently registers at 1.8, characterizing it as "Outperform." This ranking system, scaled from 1 to 5, categorizes a 1 as Strong Buy and a 5 as Sell, reflecting a substantial leaning towards optimism.
According to estimates from GuruFocus, the projected GF Value for Amazon in the upcoming year is $184.21. This figure marks an anticipated upside of 5.32% from its present price of $174.91. The GF Value serves as GuruFocus' benchmark of the stock's fair trading value, derived from historical trading multiples, past growth patterns, and forward-looking business performance forecasts. For an in-depth analysis, visit the Amazon.com Inc (AMZN, Financial) Summary page.
