Technology bigwig Amazon.com, Inc. (NASDAQ:AMZN) deserves investors’ attention as it boasts robust growth in both its Prime and Amazon Web Services (AWS) businesses. The company’s well-diversified business model and solid growth potential have probably made AMZN stock a Wall Street favorite. According to the TipRanks tool, financial bloggers and retail investors are also optimistic about the stock.
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Key Growth Catalysts
Amazon’s top line beat the analysts’ estimates in the second quarter of 2022. The company has been witnessing continued strength in its cloud business, leading to strong results.
Also, the tech giant’s outlook for the third quarter looks impressive as the company is expecting net sales between $125 billion and $130 billion, rising 13% to 17% from the year-ago period.
Amazon is expected to keep riding on the strength of the company’s Prime as it expands the streaming content options and offers other top-notch benefits to members. The company has also been working on logistics to provide rapid delivery of products.
The tech giant is focusing on automation to boost profitability amid the tight labor market and rising wages. In this regard, Amazon recently announced its plans to buy warehouse machinery and robotics maker Cloostermans. This Belgium-based company provides Amazon with tools for some warehouse operations.
Is Amazon’s Stock Expected to Go Up?
Amazon Stock’s average stock price of $177.05, reflects a 32.9% upside potential from the current levels. Turning to Wall Street, analysts are highly confident about this technology giant, which enjoys a Strong Buy consensus rating based on 37 Buys and one Hold.
Further, TipRanks data shows that financial bloggers are 87% Bullish on Amazon stock, compared to the sector average of 64%. Moreover, retail investors also have a positive stance on AMZN stock, as they have purchased 1.9% of the shares in the past 30 days.
Conclusion: AMZN Could Emerge a Winner
The e-commerce giant has got what it takes to turn around the 21.8% fall in its shares so far this year. Strength in the tech giant’s cloud computing services arm and Prime platform buoy optimism. Further, the rosy guidance for the third quarter of 2022 is pinning investors’ hopes higher on Amazon stock’s performance in the near term.
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