After price setbacks: Disappointing outlook – analyzes recommend buying Amazon shares right now | news
Shares in this article
• Investors react disappointed with Amazon’s outlook
• Analysts remain optimistic over the long term
• “Buy the dip” opportunity
In the second quarter, Amazon was able to continue to benefit from the trend towards shopping on the Internet and flourishing cloud services and increased its sales by a strong 27 percent. But the high market expectations were still missed. The disappointment of investors was further increased by the fact that a slowdown was forecast for the current quarter: thanks to the ongoing vaccination campaign, more and more stores could reopen and people would shop less online as a result, the online giant warned. The Amazon share reacted with a sharp decline in price.
But some Wall Street experts see the recent price setback as a good buying opportunity. According to “MarketWatch”, for example, Neil Saunders, managing partner of the London-based data analysis and consulting firm GlobalData, points out that Amazon was able to grow by 27 percent, while US online retailing grew by only 12.6 percent overall. He blames the far too high market expectations for the recent price slump, but it was foreseeable that the online business would normalize again when people find their way back to their accustomed life and buying behavior.
Amazon shares: buying opportunity?
In addition, Shyam Patil, an analyst at SIG Susquehanna, sees no cause for concern. Although he has lowered the price target for Amazon from $ 5,500 to just $ 5,000, he still stuck to his positive rating. It was “a great time [um Amazon-Aktien] to buy, “said Patil. In the long term, he is assuming continued growth at Amazon, based on a strong e-commerce, cloud and advertising business.
Michael Lasser also has a “buy the dip” attitude: “In the past it was wise to buy Amazon shares when they gave way in the course of an investment cycle. We think it is wise to do the same now”, “MarketWatch” quotes the UBS analyst. Although he lowered the 12-month target price from the original $ 4,350 to just $ 4,020, he reiterated his “Buy” rating for the Amazon stocks. In the long term, he is particularly positive about Amazon’s dominant market position. In the second quarter, Amazon alone accounted for 44 percent of the growth in online spending – a significant increase compared to the 36 percent that was typically over the past five years.
These analysts are by no means alone with their positive assessment. Credit Suisse, for example, rates the online giant as “Outperform” and has given the share a price target of $ 4,700. In addition, Edward Yruma, an analyst at KeyBanc Capital Markets, rated the Amazon paper as “Overweight”, with a price target of $ 4,000.
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