Congratulations to those who held Amazon (NASDAQ:AMZN) stock through 2023, as the gains have been phenomenal. However, it’s not the right time to take profits. Amazon will continue to be a dominant force in multiple market niches next year, and there’s still plenty of room for the stock to run.
While Amazon does have challenges to face, such as legal battles in the U.S. over anti-competitive practices, these issues are unlikely to pose a major problem in the coming year. So don’t miss out on the likely massive gains in Amazon stock in 2024.
Amazon stock has been aptly described as the “everything stock” by Wedbush analysts led by Scott Devitt. The company seems to be involved in practically everything, from e-commerce to grocery delivery, healthcare, cloud computing, and more.
If you think Amazon can’t continue to grow and flourish in 2024, think again. The Wedbush analysts estimate that Amazon is on pace to generate $46.5 billion of advertising revenue this year. They also believe that Amazon’s advertising opportunity remains early in its development and that the company is well positioned to continue taking a share of global digital advertising spending over a multi-year period.
Instead of obsessing over price-to-earnings ratios, consider Amazon’s expected growth rate for the coming year. The Wedbush analysts see Amazon’s retail margins continuing to rise, their Amazon Web Services (AWS) cloud business accelerating against easing comps, and their advertising revenue growth materially outperforming the broader digital advertising industry.
While some bearish stock traders might worry about Amazon facing pressure from U.S. regulators and lawmakers in 2024, it’s not a valid reason to give up on Amazon stock. The Federal Trade Commission (FTC) won’t likely take action in court against Amazon until May of 2026. The wheels of government turn slowly, and Amazon will continue to rake in massive revenue in 2024 and 2025 without the burden of an ongoing FTC legal case.
While I’m not suggesting that anyone should only hold Amazon and nothing else, if you had to invest in just one company next year, Amazon is as good a pick as any. There’s no need to worry about valuations and U.S. court battles when it comes to AMZN stock, especially in 2024. So feel free to grab some Amazon shares and hold them for a year or longer.
Disclaimer: On the date of publication, David Moadel did not have any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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