shares Amazon (Nasdaq: AMZN) It rose on Tuesday, adding up to 4.5%. As of 2:10 PM ET, the stock was up 4.1%.
There were a couple of stimuli that were sent E-Commerce Titan top. One was a bullish outlook from a Wall Street analyst. The other was a windfall on one of her investments.
Best choice for
Analysts in American bank He said Amazon remains the top choice among blue-chip stocks and FAANG stocks in 2024, according to online investment publication The Fly. Analysts maintained a Buy rating on the stock while raising their price target to $220, up from $210. This indicates a potential gain for investors of 18% compared to Tuesday’s closing price.
Analysts noted that Amazon has great potential to improve efficiency this year. Despite the progress in 2023, Amazon remains below 2018 levels when measured using a number of logistics utilization metrics tracked by the investment bank. While the recovery in digital retail has been the main driver so far this year, margin expansion could provide the next leg up.
Another catalyst that pushed Amazon higher today was the company’s investment in… Rivian Cars (NASDAQ: REVIN). Amazon owns more than 162 million shares of Rivian stock, equivalent to 16.4% of its shares. The electric vehicle (EV) maker was hit by results that weren’t as good as Wall Street expected and a general slowdown in the EV market. As a result, Rivian stock has recently fallen as much as 69% from its all-time high reached late last year.
However, Rivian announced that it would be formed New joint venture With Volkswagen AG, including an investment of up to $5 billion. Rivian shares are up more than 20% on the news (as of this writing), boosting the value of Amazon’s stake in the company by about $415 million.
Time to purchase?
Amazon shares have been on fire, rising more than 50% over the past year. Investors were optimistic about the recovery of online retail, the company’s foray into artificial intelligence (AI), and the return of its cloud growth.
With forward sales of less than 3x, Amazon is attractively priced, especially when considered in light of its multiple growth drivers.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vina He has jobs at Amazon. The Motley Fool has positions in and recommends Amazon and Bank of America. The Motley Fool has Disclosure policy.
Why Amazon stock popped on Wednesday Originally published by The Motley Fool
