Fourth-quarter net profit growth improves outlook

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Amazon stock forecast 2030: Q4 net profit growth boosts outlook – Photo: Shutterstock

The stock price of U.S. e-commerce and technology company Amazon (AMZN) has fallen over the past two weeks, reversing gains made after it reported increased revenue for the fourth quarter and full year.

Seattle-headquartered Amazon provides e-commerce, cloud infrastructure and streaming services for digital content, including TV, movies, music and books. According to CompaniesMarketCapAmazon is the fourth largest company by market capitalization at $1,528,000,000.

The NASDAQ-listed company’s stock price closed at $3,052.03 on Feb. 18, down 3.2% from $3,152.70 on Feb. 4. Amazon’s stock value also fell 1.3% from a year ago.

According to Amazon’s historical stock price, the stock’s value has been rising since January 2020. The price hit an all-time high of $3,731.41 on July 8, 2021. Amazon stock has been under pressure after outages on the Amazon Web Service cloud infrastructure on December 7. , and fell as low as $2,776.91 on Feb 3, 2022.

However, after posting strong quarterly and annual financial results on Feb. 3, Amazon stock rallied back above $3,000. Cliff D’Arcy, from the Investment Guide website The Motley Foolwrote on February 4:

“Despite an expected slowdown in sales and rapidly rising costs, investors have yet to lose faith in the Goliath of e-commerce.”

Are you interested in learning more about the Amazon stock market? Read our article for the company’s long-term stock forecast, including analyst predictions for Amazon’s future stock price in 2030.

Amazon’s net profit in the fourth quarter and in 2021 jumped

Rising retail sales and non-operating income from Rivian Automotive’s equity investment boosted Amazon’s net sales and net income during the year. fourth quarter 2021.

Amazon’s fourth-quarter net sales reached $137.4 billion, up 9% from the same quarter in 2020. The company’s fourth-quarter net profit nearly doubled year-on-year to 14, $3 billion.

The rise in net income in the fourth quarter was partly due to Amazon’s common stock investment in the recently listed Rivian Automotive, which generated a pretax valuation gain of $11.8 billion in excluding revenue. operation.

Amazon’s full-year 2021 sales jumped to $469.8 billion, up 22% from 2020, while net income jumped 57% year-on-year to $33.4 billion. dollars.

Sales in North America generated the most revenue, accounting for 60% of the total, or $279.8 billion in sales. They were followed by revenue from non-US markets, which accounted for 27% of total sales at $127.7 billion. The company’s cloud infrastructure segment, Amazon Web Service (AWS), accounted for 13%, or $62.2 billion, of revenue.

Amazon net sales in millions of dollars

Andy Jassy, ​​CEO of Amazon, said:

“As expected over the holidays, we saw increased costs due to labor shortages and inflationary pressures, and these issues persisted in the first quarter due to Omicron. Despite these short-term challenges, we remain optimistic and excited about the business as we emerge from the pandemic.”

In the first quarter of 2022, Amazon expects net sales to grow 3% to 8% year-on-year to $112 billion to $117 billion, and operating income to grow $3 billion to $6 billion. billions of dollars.

Amazon said it will continue to invest heavily in Prime, its premium membership service that offers unlimited fast free shipping for its e-commerce platform and streaming of digital content (including TV, movies , music and books) for its members.

In response to rising wages and transportation costs, Amazon will increase its Prime membership fees for the first time since 2018. In the United States, the monthly price of Prime membership will increase from $12.99 to $14, $99 and the annual subscription from $119 to $139. For new Prime members, the price change will take effect on February 18, 2022, and for current Prime members, the new price will apply after March 25, 2022, on their next renewal date.

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Overview of fourth quarter and full year financial results

Amazon web service

Amazon continues to expand its cloud infrastructure service. Below are some of the recent agreements with major players in the industry.

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On November 30, 2021, the The Nasdaq announced a multi-year partnership with AWS, with plans to migrate its North American markets to AWS in a phased approach.

Social media and technology group Meta, the parent company of Facebook, Instagram, WhatsApp and others, has chosen AWS as its long-term strategic cloud provider.

In the automotive space, Dutch-based automaker Stellantis and electric truck maker Rivian have chosen AWS as their cloud provider for vehicle platforms. Autonomous technology company Aurora has also selected AWS for the development of its cloud-based machine learning training and simulation workloads.

Amazon stock price target

Amazon 5-Year Stock Price Chart

In his analysis of Amazon shares, TipRanks was bullish, with all 33 Wall Street analysts surveyed giving a consensus buy rating over the past three months.

At the time of writing (February 23), Amazon’s 12-month average stock price projection was $4,207.87 – 38.83% upside potential. Analysts predict Amazon’s stock price could rise to $5,000 or fall to $3,600.

Amazon Stock Price Forecast 2022-2030

Given Amazon’s strong financial performance over the past year, several analysts have issued bullish mid to long-term forecasts, giving their 2030 Amazon stock projection above $5,000 per share. .

According to the stock price forecasting service Investor PortfolioAmazon’s stock is expected to reach $3,710.93 in the next 12 months and continue to rise to a new high of $6,373.27 in five years.

Government capital Amazon stock price forecasts were more optimistic, predicting that Amazon stock price would reach $5,287.38 after one year.

Stock Price Prediction Provider AI pickup expects Amazon to possibly break above $5,000 by 2029. The data provider forecasts the average Amazon stock price to settle at $3,045.35 in 2022 and reach 960.47 or $2,433.22 in 2023. The downward trend is expected to continue in 2025, with the average share price ranging between $106.68 and $311.87. , then rebounds to $2045.28 to $3555.10 in 2027.

In 2028, the average stock price was forecast at $3,297.47, reaching $5,457.30 in 2029. Amazon’s forecast stock price for 2030 was $5,320.10.

According to Coin Price Prediction, Amazon was expected to grow over the next eight years. The data provider predicts that the average Amazon stock price could reach $3,283 by the end of 2022, $3,481 in 2023, $3,875 in 2024, $4,298 in 2025, $5,154 in 2026 , $5,994 in 2027, $6,440 in 2028, and $6,717 in 2029. Forecast’s Amazon stock forecast for 2030 was $7,019.

When looking at Amazon’s future stock price, it’s important to keep in mind that analysts’ forecasts and price targets may be wrong. Analyst forecasts of Amazon’s stock price are based on fundamental and technical studies of the stock’s performance. Past performance is not indicative of future results.

FAQs

Analyst AI Pickup predicted the average Amazon stock price at $5,320.10 for 2030, while Coin Price Forecast predicted the stock to reach $7,019.

Analyst forecasts can be wrong and have been inaccurate in the past. You should do your own research and never invest what you cannot afford to lose.

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