Wall Street is getting more optimistic about the e-commerce behemoth’s near-term prospects.
Amazon stock (NASDAQ:AMZN) rose 2.3% on Tuesday after some encouraging analyst comments.
Market Analysis of Amazon Stock
According to Barclays analyst Ross Sandler, Amazon stock (NASDAQ:AMZN) is a buy ahead of its forthcoming earnings report. Bank of America and Netflix is off to a terrific start to the earnings season. Sandler anticipates more of the same when Amazon announces its earnings on Oct. 27.
Sandler anticipates that Amazon’s North American retail sales will surpass Wall Street’s projections. He also expects a pretty strong performance from Amazon’s foreign retail business, despite the hurdles created by COVID-related lockdowns in China and the European crisis.
Furthermore, Sandler believes that investors’ concerns about Amazon Web Services (AWS), the company’s cloud computing subsidiary, are exaggerated. AWS announced plans to expand its cloud infrastructure network across Asia on Tuesday. As part of its long-term expansion efforts in the area, it would spend more than $5 billion in Thailand to create data centers and other technologies.
Furthermore, Sandler thinks Amazon’s sales and earnings patterns in future quarters will be advantageous to those of other mega-cap technology businesses. Overall, he expects the stock to rise 72% to $200 per share.
So, what now for Amazon Stock?
Citigroup analysts also expressed optimism about Amazon stock (NASDAQ:AMZN). The investment bank deemed the stock a top selection for an accelerating (or slowing) economy.
Citigroup’s prediction makes it reasonable since faster economic growth would certainly increase spending on Amazon’s e-commerce platform as well as demand for its cloud services. While a worse economy would undoubtedly present obstacles, the company’s capacity to spend right through the slump may enable it to capture market share from less financially strong competitors.
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Author Okoro Chinedu 
