Amazon Forecast For Year

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Amazon Forecast For Year

Amazon (Amzn) Forecast For 1 Year

Amazon (AMZN) shares are down by 11% YTD, which is a big thing for the tech giant. If we look back, things have been great for the tech sector but 2025 might prove it otherwise.

Now, many are wondering if they should buy Amazon (AMZN) at the dip... Before we can answer that, it's important to understand the challenges faced by Amazon along with its growth prospects going forward.

Amazon To Gain 36% Upside

There is no doubt that Amazon is facing a tough macroeconomic outlook along with a decline in the AI hype. Despite this, Amazon's business is still very strong and is expected to grow.

The market cap of Amazon is $2.04 trillion and there is still a lot of potential for growth. The Q4 net sales have shown a 10% y/y jump and were recorded at $187.8 billion.

So, even if the growth rate of Amazon seems small, it is still worth hundreds of billions of dollars. Also, the firm managed to post strong results from the e-commerce unit in the North America.

Also, the management at Amazon is still cutting costs and has already initiated large layoffs. The company is planning to end 14000 jobs in this year alone. According to Morgan Stanley, it could help Amazon save around $2.1 - $3.6 billion per year.

However, JP Morgan believes that there is a 40% chance of recession in the USA. For a big company like Amazon, there is no way to avoid this headwind.

If the USA experiences an economic downturn, customers will limit their spending and may resort to Walmart.

But over the long run, the future looks bright for Amazon. The growth rate is very healthy and the company is also cutting costs. In addition, the firm is also moving into new business ventures to improve the bottom line.

Based on this, analysts believe that Amazon stock can gain 36% upside by the end of the year 2025.

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