After an unfortunate start to the new year, Amazon (NASDAQ:AMZN) bulls are back in the race following a promising earning report. AMZN stock is up more than 13% so far today as investors consider the tech giant’s ever-changing role in the economy. As such, Amazon price predictions are everywhere on a generally positive day for the markets.
What do you need to know about Amazon lately?
Well, Amazon impressed investors by reporting an outstanding earnings beat this morning. Amazon reported fourth-quarter earnings per share (EPS) of $27.75, compared to the Wall Street estimated $3.77, leaving both expectations and jaws on the floor.
The reason behind Amazon’s surprisingly strong performance? Electric vehicle (EV) startup Rivian (NASDAQ:RIVN), mostly. Amazon owns nearly 160 million shares of Rivian, which, upon its recent public offering, skyrocketed Amazon’s earnings. Indeed, without Rivian’s gain, Amazon’s EPS were closer to $8, which is still quite a bit over the expected $3.77, though not nearly as eye-catching.
Another potential thorn comes in the nature of its EPS reporting. Amazon recorded Rivian shares at its price at the end of 2021, at $104 apiece. RIVN is currently trending closer to $60, making its reported earnings, at the very least, a bit outdated.
Otherwise, Amazon’s earnings report was fairly average. The company’s retail sales were lower than its Q4 2020 peak at the height of the pandemic. This likely reflects a general reversal of the previous demand trend. Additionally, Amazon announced it would be increasing the price for its Prime membership, from $119 to $139 per year. Stated as compensation for increasing costs, it’s the first price hike for Prime since 2018. Based on its stock price jump today, however, the news clearly sat well with investors.
What do the experts think about Amazon after today’s report?
Amazon Price Predictions: What’s Next for AMZN?
- TipRanks views Amazon as a clear and uncontested strong buy. Each of the 31 analysts on TipRanks’ panel rated AMZN stock a buy. Additonally, they gave an average price of $4,211, leaving the company with plenty of room to run up from its current $3,142 price point.
- CNN Business has similar expectations for the e-commerce giant. Of the 52 analysts polled, 43 rated Amazon a Buy, seven rated it to outperform and just two recommended it to Hold. They set a median 12-month price target of $4,100 per share.
- Wallet Investor is also bullish on Amazon. The platform set a one-year forecast of $3,627 per share and a five-year forecast of $6,332, for more than 100% long-term growth.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
