Amazon’s stock (NASDAQ: AMZN) is currently trading at a price-to-earnings (P/E) ratio of 21, marking one of its lowest valuations in a decade since dropping to 19 in June 2023. The company holds an impressive $496 billion backlog of contracts and has shown a year-to-date increase of 12%, aligning its performance with the S&P 500.
In its latest earnings report, Amazon saw a 20% rise in overall revenue and a 37% increase in revenue from its cloud computing sector, Amazon Web Services. For Q3 2023, the company forecasts sales growth between 9-12% and operating income between $22.5 billion and $26.5 billion, reflecting a 29% expected increase at the median.
Analysts are largely optimistic, with 97% rating Amazon a buy and a median price target of $327 per share, suggesting a 27% potential upside. The company’s aggressive capital expenditures, projected to reach $220 billion by 2026, aim to bolster its market share in both e-commerce and cloud computing.
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