Amazon stock has potential to rise to nearly $3 trillion next year according to Wall Street.

From Nasdaq: 2024-12-02 08:15:00

Amazon (NASDAQ: AMZN) is the fourth-largest company on the stock market by market capitalization, valued at around $2 trillion, trailing behind Apple, Nvidia, and Microsoft, each worth over $3 trillion. With a 35% stock increase this year, Wall Street sees Amazon as a buy, with potential to reach $3 trillion in market cap.

Amazon’s dominance in e-commerce, accounting for nearly 40% of total U.S. e-commerce sales, positions it for future growth. With a strong logistics network and innovative AI solutions, Amazon’s generative AI offerings to its cloud computing clients are driving value. Additionally, its advertising business is thriving, with a 19% year-over-year sales increase in Q3.

Despite the challenges ahead, Amazon could potentially reach a $3 trillion market cap within the next 12-18 months. With a price-to-sales ratio of 3.5 and a price-to-earnings ratio of 44, the company would need to grow sales to $850 billion and net income to $68 billion to achieve this milestone. While sales growth may pose a challenge, earnings growth seems more feasible, making the $3 trillion mark attainable.

The Motley Fool’s “Double Down” stock alerts highlight promising companies poised for growth, similar to past successes like Nvidia, Apple, and Netflix. With new opportunities on the horizon, investors may want to consider these alerts for potentially lucrative investments in the market.

Disclosure: Amazon, Apple, Microsoft, and Nvidia are recommended by The Motley Fool, and the author holds positions in Apple. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is part of The Motley Fool’s board of directors.



Read more at Nasdaq: Amazon Stock Could Go to Almost $3 Trillion Next Year, According to 1 Wall Street Analyst