In early 2023, three predictions for Amazon stock were made. Let’s take stock of how these predictions fared:
- Foretold a bounce-back in e-commerce sales, which has materialized with accelerated growth through 2023.
- Predicted an increased foray into healthcare, which indeed happened with acquisitions and the launch of healthcare services.
- Forecasted Amazon’s continued dominance in cloud computing, a prediction affirmed by market control and performance.
- Bonus prediction of a stock rebound, validated with an 81% surge in 2023.
All three prognostications proved accurate, with the bonus round being a resounding success. Now, let’s look ahead to three predictions for 2024.
Image source: Getty Images.
Prediction 1: Amazon’s Cloud Growth Reacceleration
Amazon has been at the forefront of the cloud market, but its growth tapered as the economy faced downturns. However, in the third quarter of 2023, Amazon Web Services finally stabilized, matching the growth generated in the previous quarter. The prediction for 2024 is that this growth will continue to stabilize before picking up pace, driven by an improving economy.
Prediction 2: Amazon’s Emergence in Artificial Intelligence
The forecast entails Amazon’s emergence as a fierce competitor in the domain of generative AI, leveraging its AWS platform to facilitate this emergence. With the release of Amazon Q and access to cutting-edge AI chips, Amazon is poised to stake its claim in the AI race.
Prediction 3: Amazon Ascending to $2 Trillion Club
Despite an 81% surge in 2023, Amazon is anticipated to continue to grow, driven by its e-commerce dominance, cloud supremacy, expanding digital advertising, and foray into generative AI. These factors are poised to fuel further stock price appreciation, propelling its market cap surpassing $2 trillion.
