Amazon stock has performed poorly this year, falling by roughly 45%. It has been dragged down with the rest of the technology sector’s decline.
Despite the difficulties with demand, Citi analysts continue recommending Amazon.com (AMZN -0.98%) as a leading online stock option.
Should You Buy Amazon Stock?
Citi recommends purchasing Amazon (NASDAQ:AMZN) shares and has set a price objective of $145 for the stock. On Tuesday, the price of Amazon stock reached $92.41, up 2.1%. It has dropped by almost 45% so far this year.
Citi Analysts highlighted several areas where the technology and retail behemoth might improve its performance.
In a note published Tuesday, analysts stated, “We appreciate the demand concerns confronting Amazon’s retail business given macro, slowing AWS growth, and reduced operating profitability.” “However, we also believe that Amazon may gain wallet share during these uncertain times and that adoption of AWS can increase through greater operating efficiencies. Additionally, employment freezes can produce improving operating income.”
Because of several systemic issues and excessive hiring in the recent past, the organization revealed its intentions to lay off approximately 10,000 employees in November. In November, it put a halt to any new corporate hires.
According to analysts, the online retail behemoth increased its market share after the epidemic and has since leveled out to approximately 45% of all e-commerce in the United States. In addition, Amazon, along with Google, owned by Alphabet (GOOGL) and Meta Platforms (META), “have controlled the proportion of new ad dollars brought into the ecosystem” in the context of the worldwide digital advertising market.
The experts at Citi acknowledged the difficulties that the macroeconomic environment and the internet industry have faced this year. They stated that “valuations are around trough levels, and estimates have already pulled back, so we regard much of that gloom as priced-in.”
Many online stocks, according to the analysts at Citi, “seem to have a good risk/reward.” According to what was written, this “takes us back to the fundamentals, with a particular focus on high-quality companies,” which are “well positioned to outlive the near-term macro issues” and “should come out ahead in the new landscape.”
Within the broader internet sector, the company’s other top internet stock picks include Meta Platforms (META), Trade Desk (TTD), Criteo (CRTO), and Wayfair (W), as well as Wix( WIX ).
Featured Image – Pexels © James Anthony
Author Valerie Remorosa 
