Congratulations to investors who held Amazon (NASDAQ:AMZN) stock through 2023, as the gains have been phenomenal. However, it’s not the right time to take profits as Amazon is expected to continue its dominance in multiple market niches next year.
While Amazon does face some legal battles in the U.S. over anti-competitive practices, these issues are unlikely to pose a major problem in the coming year. So, investors shouldn’t miss out on the potential massive gains in Amazon stock in 2024.
Wedbush analysts have aptly described AMZN stock as the “everything stock” due to its involvement in various industries such as e-commerce, grocery delivery, healthcare, and cloud computing. The analysts estimate that Amazon is on track to generate $46.5 billion of advertising revenue this year and believe that the company’s advertising opportunity is still in its early stages. They also expect Amazon’s retail margins to rise, its AWS cloud business to accelerate, and its advertising revenue growth to outperform the broader digital advertising industry.
Despite concerns about U.S. regulators and lawmakers pressuring Amazon in 2024, the Federal Trade Commission (FTC) is not expected to take action against the company until May 2026. While the legal case against Amazon is significant, it is likely to be a slow process.
Investors should consider Amazon as a top pick for 2024. While it’s not necessary to invest solely in Amazon, the company’s diverse business interests and potential for massive revenue make it an attractive choice. Valuations and legal battles should not deter investors from holding Amazon shares for the long term.
Please note that the opinions expressed in this article are those of the writer and do not reflect the views of InvestorPlace.com.