Amazon Stock Price Prediction Forecast: How Much Will AMZN Be Worth In 2021 And Beyond?
On the hunt for AMZN prediction 2021 - 2025? Or have you been struggling to answer the question ‘is Amazon a good investment?’ Read on. Find out the top Amazon stock Price prediction forecast for 2021 and beyond and discover how much AMZN could be worth in 2021-2025.
With total revenue of $280.522 billion in 2019, Amazon is the ninth biggest company in the world. This e-commerce giant has revolutionized the way we shop and made its founder, Jeff Bezos, the richest person in the world. We probably all buy products from Amazon — but should you consider buying shares in Amazon (AMZN) itself?
Whether you’re looking to invest in a stock for the first time or want to diversify an existing portfolio, Amazon has famously brought its investors an impressive return on investment (ROI) in the past. According to analysts, people who invested just $1,000 in Amazon 10 years ago would have $17,727 today, making it an attractive prospect for many would-be investors.
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If you’re wondering ‘is Amazon a good investment for 2021’, read on. We’ve put together a selection of Amazon stock price predictions for 2021 and beyond to help you decide whether it’s a smart addition to your portfolio.
Short-Term Amazon stock Price Prediction for 2021: What do the analysts say?
AMZN price prediction for 2021
What are stock experts forecasting for Amazon in 2021?
With 2021 just around the corner, let’s look ahead to see what financial analysts believe could happen to the stock price of Amazon next year. At the time of writing, Amazon’s stock price is $3,201.65. The platform WalletInvestor believes that 2021 will see Amazon hit new heights, after its unprecedented boom in Q3 and 4 of 2020:
After rocketing above $2500 for the first time in June 2020, this prediction believes Amazon will open in 2021 at a value of $3098.310. From here, the price will continue to rise, exceeding its previous all-time high (ATH) of $3531.45 to close the year at $3629.370.
WalletInvestor doesn’t predict that Amazon will fall lower than a minimum price of $3098.310 for the entirety of 2021, which should be welcome news to anyone who’s hoping to answer the question ‘will the stock price of Amazon go up?’
According to its Amazon stock outlook, the stock’s price will rise up to $3,800 in 12 months.
This prediction may seem bullish, but if anything, it could be too conservative. According to stock price forecasts from the analysts at CNN Money, we could see the price of Amazon soar to over $4,000 before the end of 2021. They have predicted a potential high of $4,500, which would represent a staggering growth rate of +40.5%.
At a minimum, they don’t expect the stock price to fall below $3,048. Although this is lower than its current price of $3,201.65, it’s not an alarming prospect for investors. This is especially true because 2020 has been a breakthrough year for the retail site. With the boosted revenue from the worldwide coronavirus pandemic sending the stock price to its ATH, it wouldn’t necessarily be surprising if Amazon traded a little lower in 2021.
That said, CNN Money expects Amazon to clock in at an impressive average stock price of $3,800. We can see this mapped on the graph below:
The highest analysts’ target for Amazon share price prediction is $4,500 and the lowest one is $3,048. 42 analysts think Amazon stock is a buy in 2021.
Based on this forecast, CNN Money reports that 42 polled investment analysts recommend buying stock in Amazon.com Inc. (This is out of a possible 49 analysts). Their rating has stayed the same since November 2020, when Amazon underwent another bullish run in the lead up to Christmas.
Our final short-term prediction for the stock price of Amazon in 2021 comes from Gov Capital. This platform has given a similar forecast to that of CNN Money. According to its analysis, Gov Capital believes that the AMZN stock price could reach an average of $4235.997909 in one year’s time. If this projection is correct, then people who invest $100 today could expect their investment to be worth $132.131 by December 2021. (Gov Capital uses an in-house deep learning algorithm to make its predictions, which takes account of factors such as market cycles, similar stocks, and volume changes).
Gov Capital’s average prices are bullish enough, but for investors wondering ‘should I add AMZN to my portfolio’, its maximum predictions are even more exciting. Its algorithm has given a maximum price of over $4,966 — edging close to $5,000. If this proves to be correct, then we could be seeing an increase of almost $2,000 in just one year. This would be a growth rate of over 66%.
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Long-Term AMZN Price Predictions: 2022-2025
What are stock experts forecasting for Amazon stock price in 2022 and beyond?
Now that we’ve taken a look at the short-term price predictions for the stock price of Amazon, let’s look ahead to 2022-2025. If you’re a current investor who’s wondering whether you should buy, sell, or hold, it’s important to explore the long-term prospects of your stock before making your decision. This will potentially help you avoid losing out on any subsequent price changes that occur.
For our first long-term AMZN price prediction, we’ve looked to Long Forecast. This platform has listed the following price predictions for 2022, ranging from a minimum potential value of $3,550 in July and a maximum potential value of $4,765 in November 2022.
Although even its maximum 2022 prices aren’t as high as some of the values we saw from Gov Capital and CNN Money, this is still good news for both existing and potential investors. Its minimum prices are consistently above the current AMZN stock price, so even though this is two years in the future, it suggests we are very unlikely to see a significant crash. (Considering the strength of the Amazon empire, this would certainly be surprising).
So, how do the other long-term AMZN price predictions compare? According to a report published by the investment bank Needham & Company, the stock price of Amazon is likely to soar to $5,000 in the long-term, potentially within the next three-to-five years. The report gave Amazon a strong buy rating and cited various factors that could facilitate this growth, including the effects of the coronavirus pandemic and the growing demand for its Amazon Web Services (AWS), and its streaming offerings such as Prime and Twitch.
Needham’s long-term bullish scenario corresponds to the predictions from WalletInvestor. Returning to this platform to explore its forecasts for Amazon in 2022-2025, it’s clear it also believes that $5,000 is an achievable target. By June 2024, WalletInvestor expects AMZN to be trading at $5,048.120 — and it predicts that it will remain above $5,000 for the duration of 2025.
This table shows the opening, closing, minimum, and maximum prices for Amazon in the months of 2025. By the end of the year, WalletInvestor predicts that its stock price will potentially be as high as $5,781.510. Given Amazon’s growth rate between 2021 and 2025, this figure suggests it could possibly hit $6,000 by 2026. If this is the case, it means the stock price of Amazon will double in just six years!
Read More: What Stocks To Buy In 2021?
How Has The Stock Price Of Amazon Changed Over Time?
Amazon’s growth rate over the last few years has been incredibly strong. But how has its stock price changed since Amazon entered the market back in 1998?
Jeff Bezos founded Amazon in Washington in 1994. Originally an online marketplace for books, the company has since expanded to become of the United States’ ‘Big Five’ IT businesses, alongside Google, Apple, Microsoft, and Facebook. When it started trading in 1998, its average stock price was $15.6647, opening the year at just $4.9583 and closing at $53.550. This translated to a percentage change of 966.56% — a figure that remains its most impressive growth rate so far.
Between 1998 and 2008, however, Amazon’s stock price was fairly bearish. (It even slipped back down to $5.970 in 2001). But from this point on, it’s gone from strength to strength. 2009 proved a breakout year, with the price of AMZN rising from $87.2811 to $134.5200 — and once it surpassed $100, it never looked back.
Every year has proved more profitable than the last, with both Amazon’s revenue and its stock price consistently rising to unseen heights. Take a look at the table below to see how the stock price of Amazon has changed from 2010 to 2020:
From 2016 to 2018, Amazon’s average stock price rose from $699.5231 to $1641.7262. This was an increase of almost $1,000 in just two years — a growth rate that many of the predictions included in this article believe we could see again soon.
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What Factors Affect The Stock Price Of Amazon?
If you haven’t yet invested in AMZN and are wondering ‘is Amazon stock a good buy right now?’, we recommend taking some time to understand the different factors that can affect its price. This will help you to predict the right time to buy. If you’re an existing investor, it can help you decide whether to hold or sell.
Below, we’ve outlined some of the most important factors that can determine whether the stock price of Amazon will go up or down.
The State Of The E-Commerce Market
The e-commerce market is one of the fastest-growing sectors in the world. According to Statista, worldwide e-commerce sales are expected to hit $6.54 trillion by 2022. A growing percentage of our internet activity is taken up by online shopping and Amazon, as the world’s biggest brand, is a key company driving this trend.
The coronavirus pandemic has been paramount to the recent e-commerce boom. In Q3 of 2020, Amazon announced that its revenue was $96.1 billion — and it expects to earn between $112 and $121 in Q4. This is because global lockdowns have pushed unprecedented numbers of people to buy everything from groceries to Christmas gifts online. As Amazon sells almost everything, it’s been able to cash in on this market boom. We can see this on the table above. Its growth rate over 2020 has been sensational, opening the year at just over $1,898 and closing it at a projected $3,201.6500.
Analysts believe that our reliance on online shopping is unlikely to dwindle once the coronavirus pandemic is over. They believe the convenience of companies such as Amazon will cause people to continue ordering their products on the internet. This will almost certainly drive up Amazon’s revenue, and consequently its stock price.
By monitoring e-commerce trends, you can find the best times to buy or sell. (For example, Amazon’s stock price almost always rises towards the end of the year, as Christmas shoppers flock to its site).
Demand For Additional Amazon Services
As we all know, Amazon doesn’t just sell products. Its one-day delivery subscription service, Amazon Prime, first launched in the United States in 2005. Two years later, in 2007, it launched in the United Kingdom, Germany, and Japan. In both of these years, the stock price of Amazon rose significantly. Between the end of 2005 and 2009, it increased from $47.1500 to $134.5200 as the demand for the service grew.
Amazon Web Services, which was launched back in 2002, had a similar effect on the company’s stock price. At the start of the year, it was valued at $16.4817. By the end of 2003, this had shot up to $52.6200, showing what an impact new releases can have.
Investing In New Verticals
Just as adding new services to the Amazon offering can boost its stock price, so too could its willingness to invest in new verticals. Analysts have identified two new markets that Amazon may enter during the next few years: the sale of marijuana products (once fully legalized) and self-driving cars.
It’s predicted that Amazon will add marijuana products to its Whole Foods stores and start using self-driving vehicles for deliveries. The increased custom that could stem from these decisions is likely to drum up its stock price — especially as both moves will be well-covered in global media.
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- With total revenue of $280.522 billion in 2019, Amazon is the ninth biggest company in the world
- WalletInvestor believes we’ll see Amazon exceed its previous all-time high (ATH) of $3531.45 to close 2021 at $3629.370
- According to stock price forecasts from the analysts at CNN Money, we could see the price of Amazon soar to over $4,000 before the end of 2021
- 42 polled investment analysts recommend buying stock in Amazon.com Inc
- Gov Capital believes that the AMZN stock price could reach an average of $4235.997909 in one year’s time
- LongForecast believes the price of Amazon will range from a minimum potential value of $3,550 in July 2022 and a maximum potential value of $4,765 in November 2022
- Needham & Company believes the stock price of Amazon is likely to soar to $5,000 in the long-term
- By the end of 2025, WalletInvestor predicts Amazon’s stock price will potentially be as high as $5,781.510
- Key factors that affect the stock price of Amazon include the state of the e-commerce market, the demand for additional Amazon services, and its willingness to invest in new markets
If you’ve been looking for Amazon stock price prediction in 2021 and beyond, we hope you’ve found this article helpful. Stock investing is notoriously risky and it’s vital to have a robust risk management strategy in place if you’re considering adding AMZN to your portfolio.
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Is Amazon a good buy?
According to the short and long-term predictions, Amazon is potentially a good buy. Most analysts agree that it’s not a stock to buy in order to make a quick profit. Investing in AMZN can be a great long-term position as the price is universally expected to increase in the future. Selling too early could cause serious investor regret.
Is Amazon stock overvalued?
No, according to most analysis, Amazon stock has not been overvalued. Its current price is $3,201.65, with many analysts claiming that it’s trading at a discount.
Will Amazon pay a dividend?
Whether you’re an existing or prospective investor, it’s worth noting that Amazon has never yet paid a dividend.
Is now a good time to invest in Amazon?
The general consensus is that now is a good time to invest in Amazon. The growth predicted for the next few years, partly as a result of the coronavirus pandemic, means that investors could potentially benefit from soaring stock prices in the future.