A 10% decline in shares of Amazon.com Inc (Nasdaq: AMZN) in recent weeks is an opportunity to buy a quality name at a discount, says a UBS analyst.
Amazon stock has upside to $215
Stephen Ju reiterated his “buy” rating on the tech behemoth this morning and raised his price objective to $215 which suggests a more than 25% upside from here.His bullish call on Amazon stock arrives only days before the multinational is scheduled to report its financial results for the first quarter.
Investor focus for 1Q24 has broadened into looking at total franchise revenue and operating income vs more narrowly on AWS, particularly as growth has rebounded from 2Q23-3Q23 trough.
Note that AMZN is already up nearly 20% versus its year-to-date low in early January.
Expectations for Amazon’s Q1 earnings
Amazon is expected to significantly improve its per-share earnings to 81 cents this quarter versus 31 cents a year ago on the back of AI demand. Earlier this month, the Nasdaq-listed firm said it had identified “several areas where we can lower costs further” within its retail business as Invezz reported here. AMZN has recently rolled out ads on its flagship streaming service as well to boost its advertising revenue. Andy Jassy – its chief executive is confident that Prime Video “can be a large and profitable business on its own”. Lastly, our market analyst Ritesh A. also says bulls have “nothing to worry about” as long as Amazon stock is keeping above the crucial support at $165 level. You can read his full recommendation on how to play AMZN on this link.More By This Author:Is Enphase Stock Worth Buying On Post-Earning Dip?
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