Following another impressive quarterly report, Amazon (NASDAQ: AMZN) stock surged by over 5% in subsequent trading sessions, sparking speculation among investors about whether it can surpass the elusive $200 milestone.
While some investors believe that the stock’s remarkable 75% increase over the past year has somewhat exhausted its momentum, evidenced by modest gains in recent trading sessions despite positive earnings performance, analysts remain optimistic about AMZN stock.
In particular, Wall Street analysts cite Amazon’s impressive fundamentals as the basis for their positive outlook.
Financials bolster AMZN stock hopes of $200
Amazon’s North American and international retail segments stabilized after the e-commerce sector’s post-pandemic slowdown in 2022. The North American segment benefited from faster delivery and expanded advertising, driving increased sales of everyday essentials. International growth was fueled by expansion into high-growth markets.
AWS saw accelerated growth over the past two quarters, dispelling concerns about competition from Microsoft’s (NASDAQ: MSFT) Azure and Google Cloud. This growth was attributed to increased cloud infrastructure demand for larger workloads and new AI applications.
These rising margins, particularly in AWS, position Amazon to support the growth of its retail businesses with higher-margin cloud revenue.
Analysts see AMZN stock above $200 in next 12 months
With robust financials and a growing, evolving delivery segment, analysts predict that AMZN shares will exceed $200 for the first time in history.
The average price target is $219.75, with bearish analysts setting it at $200 and the most bullish, reaching as high as $275, an impressive 47% increase from the current price level.
If the predictions pan out, investors will witness history, with AMZN shares surpassing the $200 threshold for the first time since the IPO in 1997.
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