Development and Forecasts of Amazon Stock
Stable Price Development 2025:
According to WalletInvestor, the second half of 2025 is expected to be stable and positive for Amazon stock. After a rise in June to around 217 USD, a moderate but steady price increase is anticipated, reflecting investors’ confidence in Amazon’s market position.
Revenue and Margin Growth:
Analysts forecast revenue of around 698 billion USD for 2025, which corresponds to a growth of about 9.48% compared to the previous year. The EBITDA estimates average around 166 billion USD – an increase of nearly 36% compared to last year. These figures indicate a significant improvement in profitability.
Long-Term Growth Objectives:
Revenue forecasts indicate a continuous upward trend until 2029, with expected revenues of up to one trillion USD. EBITDA margins are also expected to continue to rise, highlighting Amazon’s ability to improve margins.
Importance of AI Focus
Amazon is heavily investing in AI technologies to increase efficiency and explore new business areas. This not only supports its core e-commerce business through better personalization and logistics optimization but also strengthens the cloud segment (AWS), which generates high margins.
Valuation from an Investor’s Perspective
Morningstar currently views the stock as undervalued with a fair value estimate of about 240 USD per share for 2025. The free cash flow yield stands at approximately 2%, while the enterprise value to sales ratio is at four times – indicators suggesting that there is still potential for growth. In addition, it is expected that Amazon’s online retail will continue to gain market share from brick-and-mortar stores.
Conclusion: Revolutionary Potential?
Amazon shows clear signs of systematic margin improvement combined with strong growth potential through innovations like the use of AI as well as expansion into various retail segments (groceries, pharmacies, etc.). Analyst expectations are predominantly positive with price targets significantly above the current level. Thus, Amazon could indeed represent the next major revolution in the technology sector – both as a company and as an investment opportunity.
In summary, the news about Amazon’s development is highly relevant: The company combines strong financial fundamentals with forward-looking technology integration, thus offering promising prospects for investors.