Analyst revamps Amazon stock price target before October’s key event

Amazon’s (AMZN) October Prime Day will likely reflect the same shopping trends at Costco.

Costco recently noted that shoppers are resuming spending on non-food items as inflation eases, with non-food categories like beauty and home goods leading its comparable sales growth.

This shift bodes well for Amazon, which is gearing up for its Prime Day event from Oct. eight to 9. As consumers make bigger discretionary spending, Amazon could see a tremendous boost in sales throughout Prime Day, specifically in non-food categories like electronics and apparel.

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There may possibly be more to are awaiting because the holiday season approaches. Adobe recently projected U.S. online sales to reach $240.eight billion throughout the 2024 holiday season (from Nov. 1 through Dec. 31, 2024), marking an eight.four% year-over-year make bigger, in step with thefly.com’s report on Sept. 25.

On Sept.26, Cathie Wood bought 2K shares of Amazon through its ARK Self reliant Technology & Robotics ETF (ARKQ) beforehand of the fourth quarter, reflecting a total dollar value of $389,488 and further signaling continued self belief within the e-commerce’s growth potential.

Amazon recently announced its return-to-place of job (RTO) policy, which requires employees to return to physical offices not lower than three days a week.

According to a latest survey on Blind, seventy three% of two,585 Amazon workers said they will be allowing for finding new jobs after CEO Andy Jassy's Sept. sixteen memo.

Alternatively, Amazon's stock price has little changed as strict place of job attendance policies shall be a resulting from get people to quit and steer away from the cost of laying them off.

Amazon’s Q2 financials disappointed investors

Amazon stock is up greater than 24% year-to-date as of September 30, outperforming the S&P five hundred, which is up 21.5%. The company lost nearly 9% on August 2 following disappointing sales but has now recovered from that drop.

Related: Amazon’s new return-to-place of job mandate is commencing to backfire

The entire way through the second quarter, the company earned $1.26 per share, topping the $1.03 expected by analysts. Alternatively, Q2 revenue of $147.Ninety eight billion missed the $148.56 billion forecast.

The company also posted a weak Q3 guidance, awaiting revenue between $154 billion and $158.5 billion. The midpoint, $156.25 billion, falls wanting the common analyst estimate of $158.24 billion.

AWS grew 19% year-over-year, beating estimates but lagging behind rivals Microsoft and Google. Meanwhile, Amazon’s advertising revenue rose 20% to $12.seventy seven billion, just under expectations.

Analysts raise Amazon stock price target

On Sept. 30, Truist analyst Youssef Squali raised Amazon's price target to $265 from $230 and kept a buy rating.

Related: Amazon gets sued by American Eagle for cyber web-famous dupes

Squali expects Amazon's North The u.s. revenue to align with consensus estimates, driven by a resilient consumer base, continued advertising revenue growth, accelerated Web Services and products growth, and higher year-over-year operating margins.

“This comes on the same time because the company invests aggressively in synthetic intelligence, AWS, logistics and Project Kuiper,” the analyst tells investors in a research note pulled by thefly.com.

Truist maintains that Amazon is its top mega-cap p.c. because the company continues to make bigger its share of global e-commerce and improve its value proposition for both merchants and consumers.

The firm also views Amazon as one in every of the precise kind players in cloud, AI, digital advertising, and global logistics. Additionally, Truist has shifted its price target projection from fiscal 2024 to 2025.

More Retail Stocks:

• Target makes bold clarification to return policy amid alarming trend
• Analyst revisits Costco stock price target, rating beforehand of earnings
• Nike shares swoosh higher after new CEO is often referred to as

Evercore ISI analyst Mark Mahaney also raised Amazon’s price target to $240 from $225 and kept an outperform rating. The stock is still the analyst's "#1 Large Cap Long" in Web, thefly.com reported on Sept. 20.

The analyst highlighted that Amazon's Prime Video is projected to generate $three billion to $5.9 billion in revenue in 2025, which may add three% to 9% growth to the estimated $56 billion in ad revenue Amazon is anticipated to make in 2024.

Amazon shares traded at $186.33 on Sept. 30.

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