Amazon stock price

Amazon Stock Still Has a 42% Upside According to JP Morgan

Following Meta Platforms (NASDAQ:FB) recent stock plummet, investor sentiment across the tech sector looked bruised. This earnings season has been bleak to say the least, with investors struggling to match current valuations with future guidance for 2022.

However from the ashes, Amazon Stock emerged victorious following its Q4 earnings report, with AMZN stock gaining 14% in after market trading hours. Amazon generated a mammoth $137.4 billion Net Sales in the fourth quarter, representing a YOY improvement of 9%.

More importantly, Amazon’s bottom line improved two fold. Amazon’s Net income reached $14.3 billion in the fourth quarter ($27.75 per diluted share), compared with $7.2 billion ($14.09 per diluted share) YOY with Amazon’s Rivian investment heavily boosting the companies earnings.

Following the companies impressive Q4 results, Wallstreet analysts across the board boosted their forecasts for Amazon Stock. Here’s what Wallstreet had to say about Amazon Stock and its outlook in 2022.

JP Morgan Boost price target on Amazon Stock

Following the companies results, JPMorgan analyst Doug Anmuth boosted the firm’s price target on Amazon Stock to $4,500 with an Overweight Rating. The analyst highlighted that although Amazon faced multiple macro challenges in Q4, Amazon was able to deliver “solid” Q4 results with strong Web Services numbers.

In addition, Anmuth noted Amazon’s Q1 2022 forecasts were “better-than-feared” by Wallstreet. The analyst expects Amazons revenue growth to re-accelerate in Q2 2022, and Amazon Stock remains one of JP Morgans top stock ideas for 2022.

The new $4,500 target from JP Morgan implies a 42% upside from Amazon’s current trading price. Multiple analysts landed in similar territory following Q4 results, with Goldman Sachs setting at $4,200 target while Barclays increased their valuation to $4,400. Overall, Wallstreet remains extremely upbeat on the outlook for Amazon Stock in 2022.

JP Morgan

Is Amazon Stock A Winner in 2022?

Amazon was one of the most upgraded stocks on Wallstreet in 2021. Remarkably, across the board of 42 Wallstreet analysts all 42 have currently listed a Buy rating on Amazon. Despite the companies strong analyst coverage, AMZN stock only returned 2.48% for the entire year of 2021.

This was partially due to the stock coming off a record breaking year in 2020, gaining 73% as online sales surged. Secondly, the second half of 2021 proved a difficult period for tech companies as investors took profits and inflationary concerns pressed weaker hands.

Considering Amazon Stocks 2021 performance, Wallstreet remains upbeat on the outlook for the stock with JP Morgan forecasting a 42% upside from the current trading price. Do you agree with Wallstreet’s view on the Tech Giant? Let us know in the comments below.

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The content above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you. 

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