Amazon stock surged 4.5% on positive news, including analyst upgrades and successful investment in Rivian.

From Nasdaq, Inc.: 2024-06-26 15:30:00

Shares of Amazon (NASDAQ: AMZN) surged 4.5% on Tuesday, reaching a 4.1% increase by 2:10 p.m. ET. Boosted by positive news from a Wall Street analyst and unexpected gains from an investment, Amazon continues to be a top pick among large-cap and FAANG stocks for 2024, with a price target of $220.

Analysts believe Amazon has room for efficiency improvements this year, with potential margin expansions after a rebound in digital retail. Additionally, Amazon’s investment in Rivian Automotive (NASDAQ: RIVN) paid off as Rivian announced a joint venture with Volkswagen AG, leading Rivian stock to surge over 20%.

With Amazon stock up over 50% in the past year, investors remain bullish on the company’s growth drivers, including online retail, AI, and cloud growth. At less than 3x forward sales, Amazon is considered attractively priced, making it a potential investment opportunity with considerable growth prospects.



Read more at Nasdaq, Inc.: Why Amazon Stock Popped on Wednesday