Analysts from Wedbush recently launched coverage of Amazon.com (ticker: AMZN) with a bullish rating, emphasizing the company’s position as the global leader in retail. In their analysis, they gave Amazon the equivalent of a Buy rating and set a price target of $180, implying a 34% upside from the stock’s current price.
While Amazon has diversified its portfolio with ventures like cloud computing and streaming, Wedbush analysts believe it is essential not to overlook their core business: e-commerce. The analysts highlight Amazon’s industry-leading fulfillment infrastructure, which has experienced significant growth in delivering same-day and next-day orders. They note that Amazon’s core business is well-positioned in the evolving e-commerce landscape, benefiting from the ongoing shift online.
In the second quarter, a substantial portion of Amazon’s revenue came from its retail business. With total revenue amounting to $134.4 billion, online store sales accounted for $53 billion, and third-party seller services contributed $32.3 billion. Additionally, market sentiment improved further due to strong results from Amazon’s Web Services business, which surpassed revenue expectations.
Although the Wedbush call didn’t significantly impact Amazon’s stock price on Tuesday, it is worth noting that the stock has already surged by 61% in 2023.