Amazon’s (AMZN) performance in 2024 so far has been impressive, having gained over 24%. While the company continues to dominate the e-commerce market, its Advertising and Cloud unit, AWS (Amazon Web Services), has been driving growth. Further, AMZN’s diverse portfolio, coupled with its strategic expansion efforts, make it a major player in the tech industry.
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According to TipRanks’ Bulls Say, Bears Say tool, bulls highlighted three compelling reasons to be optimistic about the company.
- Growing Advertising Business: The analysts see potential in AMZN’s rapidly rising Advertising Services segment. It is worth highlighting that in the second quarter, the unit witnessed remarkable growth, surging 20% year-over-year. This outpaced the 11.1% surge in Alphabet’s (GOOGL) Google ad revenue during the same period. Interestingly, Amazon’s ability to effectively reach a wide audience is making it an attractive platform for advertisers.
- AWS Fuels Amazon’s Organic Revenue Surge: Analysts believe that the company’s AWS segment can drive AMZN’s organic revenue growth and position it ahead of other tech titans. In 2024, AWS is seeing strong demand from businesses of all sizes seeking cloud-based solutions for their IT infrastructure and applications. It should be noted that AWS’s extensive infrastructure and expertise in cloud computing help it compete with its rivals.
- Amazon’s Expansion Push: The company’s massive infrastructure positions it for substantial growth in e-commerce and retail, both domestically and globally. To explain further, Amazon’s extensive network of fulfillment centers, delivery services, and cloud computing capabilities enables it to provide quicker shipping times and a broader product selection. This helps attract more customers, penetrate new markets, and expand its market share.
Is AMZN a Good Stock to Buy?
Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 45 Buys and two Holds assigned in the last three months. At $224.38, the average Amazon price target implies an 18.73% upside potential.
