Amazon Stock Price Targets Updated Following Earnings Report

Amazon Stock Earnings Report Overview

Amazon's (NASDAQ: AMZN) earnings report for Q4 and FY 2024, released on February 6, was unexpectedly strong in certain parameters, resulting in a 'double beat.' Nevertheless, the stock experienced a decline as the guidance provided was weaker than anticipated, causing market skepticism.

Market Reaction to Amazon's Guidance

Initially closing at $238.74, Amazon stock saw a dip to $229.15 shortly after. By February 10, AMZN shares recovered slightly to $230.23, up 4.94% year-to-date (YTD). The guidance projected sales between $151 billion and $155.5 billion, falling short of estimates at $158.5 billion.

Analysts' Adjustments Following Earnings

• Citi's Ronald Josey maintains a 'Buy' rating, adjusting the price target from $275 to $273, indicating an 18.57% potential upside.
• Maxim Group's Tom Forte reiterates a 'Buy' rating, raising the target from $260 to $280, suggesting a 21.61% increase.
• Barclays' Ross Sandler supports an 'Overweight' rating with a target bump from $235 to $265, which is a 15.1% rise from the current levels.

Future Outlook for Amazon Stock

Despite the challenges in guidance, analysts remain optimistic, citing the strength in AWS demand and other operational segments as key factors for potential growth. Investors are advised to 'buy the dip' in light of these reassessments.