Congratulations to those who held Amazon (NASDAQ:AMZN) stock throughout 2023, as the gains have been phenomenal. However, it’s not the right time to take profits just yet. Amazon is expected to remain a dominant force in multiple market niches next year, with plenty of room for the stock to continue its upward trajectory.
While Amazon does face some legal battles in the U.S., particularly accusations of 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, 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 of advertising revenue this year, and they believe that the company’s advertising opportunity is still in its early stages. They also expect Amazon’s retail margins to continue rising, its AWS cloud business to accelerate, and its advertising revenue growth to outperform the broader digital advertising industry.
While some bearish traders may worry about Amazon facing pressure from 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, according to a joint statement. The case alleges anti-competitive practices by Amazon, but it presents complex legal and factual issues that require substantial discovery. Therefore, Amazon 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 fits Amazon perfectly, 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.
Please note that the opinions expressed in this article are those of the writer and do not reflect the views of InvestorPlace.com.