From Nasdaq: 2025-06-14 04:12:00

Amazon (NASDAQ: AMZN) stock has fallen 3% year to date, but Wall Street expects a 13% upside with a target price of $240 per share. Tariffs have impacted the stock, but positive sentiment is rising following eased trade tensions with China. Amazon is a top pick among retail investors.

Amazon is positioned for growth in e-commerce, advertising, and cloud computing. The company leads in online marketplace traffic, ad tech, and cloud services. With double-digit sales growth projections in these sectors through 2030, Amazon’s profit margins are expected to increase as well, driven by AI automation and higher-margin revenue streams.

Investing $5,000 in Amazon may not turn into $100,000 over the next decade due to the stock already being valued at $2.3 trillion. While Amazon has shown strong performance and earnings growth, a 20-fold return seems unlikely. Analysts estimate 10% annual earnings growth through 2026, suggesting potential undervaluation despite a high P/E ratio.

Consideration for investing in Amazon should weigh long-term growth potential against current valuations. While the stock may not deliver a 20-fold return, its position in growing industries and track record for beating earnings estimates make it a compelling investment choice. Wall Street expects continued outperformance in the coming years.

For the latest stock recommendations and potential high-growth opportunities, consult The Motley Fool’s Stock Advisor analyst team. While Amazon is not currently on their list, past picks like Netflix and Nvidia have delivered substantial returns. Join Stock Advisor for access to their top 10 stock recommendations and market-beating returns.



Read more at Nasdaq: Will $5,000 Invested in Amazon Stock Make You $100,000 in a Decade?