Congratulations to all those who held Amazon (NASDAQ:AMZN) stock throughout 2023, as the gains have been phenomenal. But don’t rush to take profits just yet. Amazon is set to remain a dominant force in multiple market niches next year, with plenty of room for the stock to continue its upward trajectory.
Of course, Amazon does face some challenges, particularly in the form of legal battles in the U.S. where legislators have accused the company of anti-competitive practices. However, these legal issues are unlikely to pose a major problem in the coming year. So, don’t miss out on the potential massive gains in Amazon stock in 2024.
Wedbush analysts, led by Scott Devitt, have aptly described AMZN stock as the “everything stock.” Amazon seems to be involved in practically everything, from e-commerce to grocery delivery, healthcare, cloud computing, and more. The analysts estimate that Amazon is on track to generate $46.5 billion in advertising revenue this year, with plenty of room for growth in the advertising sector.
If you’re concerned about price-to-earnings ratios, consider Amazon’s expected growth rate for the coming year. The Wedbush analysts predict that Amazon’s retail margins will continue to rise, and its Amazon Web Services (AWS) cloud business will accelerate. Additionally, they expect Amazon’s advertising revenue growth to outperform the broader digital advertising industry.
While some bearish traders may worry about Amazon’s legal issues with U.S. regulators and lawmakers in 2024, it’s not a valid reason to give up on the stock. The Federal Trade Commission (FTC) won’t likely take action against Amazon in court until May 2026. Although the case alleges anti-competitive practices, it will take time for the wheels of government to turn.
In conclusion, while I’m not suggesting that you invest solely in Amazon and nothing else, if you had to choose just one company for next year, Amazon is as good a pick as any. The “everything stock” title certainly fits, and there’s no need to worry about valuations or U.S. court battles when it comes to AMZN stock, especially in 2024. So, feel free to grab some Amazon shares and hold onto them for a year or longer.
Disclaimer: The opinions expressed in this article are those of the writer and do not necessarily reflect the views of InvestorPlace.com. The writer does not have any positions in the securities mentioned.