Amazon (AMZN) is climbing 2% after Bank of America predicted that the conglomerate would deliver strong fourth-quarter results on Thursday.
The bank kept a $255 price target and a Buy rating on the shares, which reached a new 52-week high of $242.52 today.
A customer entering an internet retail store, illustrating the convenience of online shopping.
Bank of America’s Views on AMZN’s Q4 Results
The bank predicts that Amazon generated Q4 operating profit of $19.7 billion, well above analysts’ average estimate of $18.9 billion. AMZN benefited from the efficient utilization of its employees and fulfillment system in Q4, according to the bank.
Additionally, the company should get a boost from the strong e-commerce environment in Q4 and the 19%-20% growth of its cloud unit, AWS, as firms’ spending on AI continues to be elevated, Bank of America stated. The 19%-20% increase is in line with analysts’ average estimate.
Another Firm Was Bullish on AMZN Today
Investment bank Benchmark raised its price target on the shares to $265 from $215. Benchmark believes that the company’s Q4 results may exceed analysts’ average estimates. Benchmark is bullish on AMZN’s long-term outlook and kept a Buy rating on the name.
The Recent Price Action of AMZN Stock
In the last month, the shares have risen 9%, while they have jumped 21% in the last three months.
READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
This article is originally published at Insider Monkey.
