Is Amazon Stock (AMZN) a Buy? TipRanks AI Analyst Says Yes
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For context, TipRanks' A.I. Stock Analysis provides automated, data-backed evaluations of stocks across key metrics, offering users a clear and concise view of a stock's potential.
Amazon's AI-driven score reflects its solid financial performance and encouraging details from its recent earnings call.
For context, Amazon's Q2 net sales grew 13% year-over-year to $167.7 billion, surpassing Wall Street's estimate of $162.2 billion. Meanwhile, Amazon Web Services (AWS) remains the main profit engine, with sales rising 17.5% to $30.9 billion. Despite this, investors reacted negatively to the results, as AWS's performance failed to meet high expectations.
For Q3, Amazon expects net sales between $174 billion and $179.5 billion, showing growth of 10% to 13%, higher than the analyst estimate of $173.27 billion.
On the other hand, some technical indicators and valuation measures signal the need for caution. Below is the screenshot for reference.
Wall Street Also Stays Bullish on AMZN Stock
Following its Q2 results, several top-rated analysts have reiterated their Buy ratings and raised price targets on AMZN stock. Overall, analysts believe the recent dip in the stock presents an attractive buying opportunity for investors.
Additionally, analysts applauded Amazon's recent announcement that OpenAI's open-weight models are now accessible through its AWS cloud platform. These models may not be the most advanced, but they provide great value by offering strong performance at a lower cost, making them appealing to many customers.
What Is the Price Target for AMZN Stock?
According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 43 Buys and one Hold assigned in the last three months. At $264.21, the Amazon average share price target implies an upside of 18.6% from the current level.
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