uploads///Analysts Reco

Why Analysts See Amazon Growing by 43.2% over the Next Five Years


Dec. 4 2020, Updated 10:53 a.m. ET

What drives analyst recommendations

Of the 46 analysts covering Amazon.com (AMZN), 40 have given it “buy” recommendations, six have given it “hold” recommendations, and none has given it a “sell” recommendation.

The analyst stock price target for Amazon is $876.51, with a median target estimate of $875.00, which means that Amazon is trading at a discount of nearly 13.3% to its median target.

Given Amazon’s impressive 2Q16 results, strategic initiatives to drive Prime membership growth, strong fundamentals, healthy guidance, and the staggering growth of Amazon Web Services, analysts expect Amazon’s earnings to rise at an average annual rate of 43.2% over the next five years.

Article continues below advertisement

Moving averages

On July 29, Amazon’s last trading price was $758.81. The company’s stock was trading 2.3% above its 20-day moving average of $741.47. It was trading 4.7% above its 50-day moving average of $725.01 and 12.8% above its 100-day moving average of $672.80. 


A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. Amazon’s 14-day MACD of 7.9 shows an upward trading trend, as the figure is positive.

Amazon’s 14-day RSI (relative strength index) is 66, which shows that the stock is somewhat overbought. Remember, an RSI figure of above 70 indicates that a stock has been overbought, whereas RSI figure of below 30 suggests that a stock has been oversold.


Latest Amazon News and Updates

    Market Realist Logo

    © Copyright 2022 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.