Amazon Stock Price: AI Predictions for Year-End 2024

Amazon Stock Performance Overview

Amazon (NASDAQ: AMZN) has had a good year thus far — the tech behemoth is up 25.35% year-to-date (YTD). However, it hasn't exactly been smooth sailing — a July 9 peak of $199.79 was soon followed by a precipitous drop to $161 by August 4.

Significant Decline in Amazon Stock Price

The 19% decline in Amazon stock price was caused by a mixed Q2 2024 earnings report — while the company outperformed in terms of EPS, a revenue miss and disappointing guidance led to this significant pullback. Since then, AMZN's share price has recovered — at press time, the stock is trading at $187.89.

Analysts' Insights on AMZN Stock Price

The online retail business's Q2 report was far from a fluke — Amazon has delivered seven consecutive earnings beats, most by double-digit percentages; yet revenue has consistently remained in line with estimates or slightly below them. The rising costs of logistics, primarily driven by inflation and supply chain complexity, have diminished the tech leader's profit margins in the retail sector.

• Amazon Web Services (AWS) continues to be a leading driver of growth and has benefitted from the rise of AI.
• Competitive pressures from Microsoft's Azure and Alphabet's Cloud Platform present significant challenges.

Amazon is preparing to develop small, modular nuclear reactors to ensure sustainable energy for its data centers. This is expected to yield long-term cost savings, albeit it will take time to see the impact.

AI Predictions for AMZN Stock Price by Year-End 2024

Despite challenges, analysts remain optimistic. Wall Street's average price target is $228.28 for AMZN a year from now. OpenAI’s ChatGPT-4o offers a slightly bearish price target of $225, while Google's Gemini suggests a more cautious target of $200, factoring in risks like regulatory challenges.