Congratulations to those who held Amazon (NASDAQ:AMZN) stock in 2023, as the gains have been phenomenal. However, it’s not the right time to take profits as Amazon is expected to continue dominating multiple market niches next year with plenty of room for the stock to run.
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 the company’s involvement in practically everything, from e-commerce to 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, AWS cloud business, and 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, and the case presents complex legal and factual issues that require substantial discovery.
Although Amazon is not completely out of the woods legally, it is expected to continue generating massive revenue in 2024 and 2025 without the burden of an ongoing FTC legal case.
While it’s not advised to invest solely in one company, if you had to choose just one for next year, Amazon is as good a pick as any. The “everything stock” title for Amazon fits well, and 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.
Please note that the opinions expressed in this article are those of the writer and do not reflect the views of InvestorPlace.