Amazon stock price forecast revised down to $174
AMZN Price and Performance Chart
Amazon Stock Price Prediction: Updated Results
- Revenue up $113 billion to $121 billion
- Product sales down $58 billion to $56.5 billion
- Services sales up $55 billion to $65 billion
- AWS up 33% to $19.7 billion
- Ad revenue up 18% to $8.7 billion
- Net income down $7.8 billion to -$2.0 billion
- Outlook for Q3
- Revenues of $125 billion to $130 billion (up 13-17%)
- Revenue from 0 to 3.5 billion dollars (instead of 4.9 billion dollars)
Amazon Stock Price Prediction: 12-Month Forecast
Amazon Stock Price Prediction: Latest Video
Amazon Stock Price Prediction: Technical Recommendation
Amazon stock price prediction: Google search trend
The level of interest on Google search for Amazon is lower than yesterday.
Amazon stock price prediction: latest tweet
Amazon Stock Forecast: Recession Worries
Rumors of a recession have multiplied in recent weeks. In particular, after the Fed hiked rates twice in the last 6 weeks.
Consumer spending data published by Barclays for the month of May suggests that spending rose only 10% in May, compared to an average of 20% for the rest of the months.
Another report from Bank of America analysis of their credit and debit card data suggests that the lowest income group was hit hardest in May. Additionally, they also reported that while spending on services increased in May, spending on goods (adjusted for inflation) was lower than in May 2021.
June will be even lower as fuel prices rose further and the Federal Reserve raised interest rates. This is likely to have a negative impact on Amazon
Amzn Stock Forecast: Bull Case
- Profitable cloud business:- It is true that Amazon’s main revenue comes from e-commerce business, but the cloud business (Amazon Web Services) is quickly attracting everyone’s attention and becoming the most profitable for Amazon Inc. AWS revenue in 2021 amounted to $62.2 billion, an increase. 37% year-on-year. 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 lineup of customers which includes Rivian, Under Armour, Goldman Sachs, Meta Platforms and many other high-profile customers. That says a lot about the demand for cloud-based businesses and AWS is fiercely competing with Google. AWS generated $18.5 billion in operating profit in 2021, an impressive 37% year-over-year increase.
- Advertising sector – The next gem in the making is the advertising business for Amazon. Amazon split its advertising revenue for the first time in last quarter’s results. It posted revenue of $9.7 billion in the fourth quarter, a year-on-year increase of 33%. Amazon provides advertising services to broad customer segments including sellers, suppliers, customers, etc. Thursday night football.
Amazon Stock Forecast: Bear Case
- Persistent Work Problems- Recently, the Retail, Wholesale, and Department Store Union (RWDSU) accused Amazon of unlawful interference in a union election in Alabama. He is accused that Amazon officials removed union literature from his break room and restricted access to it. That may or may not be true, but the fact is that these accusations of unfair treatment against Amazon are nothing new, and it appears that Amazon is trying to hinder unionization rather than improve worker relations. This could harm Amazon’s business in the future.
- Lower operating margins in e-commerce business – Amazon’s e-commerce business reported revenue of $407 billion for calendar year 2021. But despite good revenue growth business, the operating margin declined year-on-year. In North America, the operating margin was 3%, a decrease of 1% compared to 2020. The international segment recorded a negative operating loss margin of 1% in 2021, compared to an operating loss margin of 1% the previous year. This decline in operating profit is due to labor supply issues and supply chain disruptions. These should continue in 2022.
- Decline in cash flow – In fact, Amazon’s cash flow over the last 12 months was down 30% year-over-year to $46.3 billion and free cash flow turned negative by 9.1 billion for the last 2 months ended December 31, 2021. Free cash flow was positive at $31.0 billion for the last 12 months ended December 31, 2020.
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Note: Crowdwisdom360 gathers forecasts and data from all over the net and has no internal views on likely stock or cryptocurrency trends. Please consult a registered investment advisor to guide you in your financial decisions.