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 continue dominating multiple market niches in the coming year, leaving plenty of room for the stock to grow.
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 2024. So, investors shouldn’t miss out on the potential massive gains in Amazon stock next year.
Wedbush analysts, led by Scott Devitt, aptly described AMZN stock as the “everything stock.” Amazon seems to be involved in practically everything, from e-commerce to grocery delivery, healthcare, and cloud computing.
If you think Amazon’s growth will slow down in 2024, think again. The Wedbush analysts estimate that Amazon is on track to generate $46.5 billion in advertising revenue this year. They also believe that Amazon’s advertising opportunity is still in its early stages and that the company is well-positioned to continue gaining a share of global digital advertising spending over the next few years.
Rather than obsessing over 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, while its Amazon Web Services (AWS) cloud business will accelerate. They also expect Amazon’s advertising revenue growth to outperform the broader digital advertising industry.
Despite concerns about U.S. regulators and lawmakers pressuring Amazon in 2024, the Wedbush analysts argue that this shouldn’t be a reason to give up on the stock. The Federal Trade Commission (FTC) won’t likely take action against Amazon in court until May 2026. While the case alleges anti-competitive practices, it will take time for the legal process to unfold.
It’s important to note that Amazon is not completely out of the woods legally, but it’s expected to continue generating massive revenue in 2024 and 2025 without the burden of an ongoing FTC case.
While I’m not suggesting that investors 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. The “everything stock” title truly fits Amazon, 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.