NASDAQ AMZN Share Price Forecast
The company’s success is based on allowing customers to buy products online easily and quickly even in the impulsive situation. There is no instant call button for stocks, but investing in Amazon stock is roughly as simple as shopping on the Amazon e-commerce website. Before buying Amazon stock, please consider the following.
Amazon continued to turn to e-commerce website shopping from the public who didn’t want to go to physical stores due to the fear of covid-19. While Amazon’s e-commerce business relies heavily on economic health and consumer spending, the company is diverse. It exposes it to the burgeoning cloud business and engages in advertising.
One of the mainly significant notes is that you can have enough money to invest in Amazon warehouses. The reply is not essentially similar to how much capital you have. Indeed, the e-commerce website business is considered a long-term asset and economic experts often caution against buying stocks with all of your money for the next five years.
Revenue sources of Amazon.com Inc. in recent past and present
Although Amazon dominates e-commerce, it faces increasing competition to sell direct to consumers from many large and small businesses. However, although the share of online sales in total retail sales has increased but is still increasing, although still relatively small, it seems that other competitors may have room and can’t challenge Amazon in the short term. Pose huge competitive risks.
Indeed, consumer response to COVID-19 has caused Amazon’s retail sales to grow significantly. In the second quarter of 2020, sales increased by nearly 42% year-on-year. In contrast, sales in the second quarter of 2019 increased approximately 18% over the same period last year.
NASDAQ: AMZN share price target
Amazon is the biggest name in the online retail industry, and it’s still growing. With holidays approaching and promising growth prospects, coupled with diverse business models continuing to benefit during a pandemic, it means Amazon has become today’s shopper. The retail data mentioned above is not directly related to the Amazon Web Services (AWS) cloud business. AWS still accounts for a small portion of the company’s total revenue, but AWS accounts for the majority of Amazon’s profits.
In the previous quarter, AWS’s revenue reached more than $ 10.8 billion, accounting for only 12% of total revenue. However, due to its high gross profit margin, the company’s operating profit of nearly $ 3.4 billion accounts for more than 57% of the company’s operating profit. We believe the company can generate sustainable growth. However, in the short term, there can be some downward sales compared to recent quarters. We expect the company will touch to $ 4000 mark in the next three years. You can check the AMZN balance sheet at https://www.webull.com/balance-sheet/nasdaq-amzn before investing.