Amazon’s Stock Looks to Enter 2024 With a Record-tying Weekly Winning Streak

Amazon.com Inc. experienced a positive turn of events on Thursday as its shares rebounded into positive territory for the week. This surge indicates a potential record-tying weekly winning streak by the end of the year. Despite a slight 0.03% decline in the past three sessions, the e-commerce and cloud giant's stock, AMZN, demonstrated resilience by rising 0.24% in morning trading on Friday, contributing to a 0.22% gain for the week.

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If Amazon manages to sustain these gains until the market closes, it would mark an impressive 10 consecutive weeks of positive performance. This achievement would equal the existing record set during the week ending July 10, 2020, a period characterized by the e-commerce boom induced by the pandemic. Notably, the current 10-week streak has seen a 22.8% increase in stock value, a notable contrast to the 40% rally observed during the 2020 streak.

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Year-to-date, Amazon's stock has witnessed an outstanding 83% surge, potentially securing its best yearly performance since the remarkable 118% increase in 2015. This year's ascent ranks as the sixth-best yearly gain since the company went public in May 1997, with the record being a staggering 966% rally in 1998.

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However, the stock faced a brief setback from mid-September to late October due to speculation about regulatory actions that could lead to a breakup of Amazon. The concerns centered around allegations of the company illegally maintaining monopoly power. Surprisingly, investors quickly recognized the potential benefits of a breakup, anticipating that the company's individual components could be more valuable than the sum of their parts. In such a scenario, investors would receive a payout reflecting the difference in value.

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As of now, Amazon's stock is trading approximately 17.6% below its record close of $186.57, recorded on July 8, 2021. Nevertheless, the positive trajectory throughout the year positions Amazon as one of the "Magnificent Seven," comprising companies with the largest market capitalizations in the S&P 500. These seven companies collectively contributed more than half of the broad-market barometer's 24.6% rally this year.

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Among the Magnificent Seven, Amazon's stock stands as the median gainer for the year, with Nvidia Corp. leading at 241.1%, and Apple Inc. at seventh place with a 48.8% increase. Despite this, Amazon boasts the highest percentage of analysts recommending investors buy at current levels, with 98% of the 58 surveyed analysts expressing bullish sentiments. The average 12-month price target on the stock is $179.20, implying a potential 16.5% upside from the current levels.

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Comparatively, other members of the Magnificent Seven also garner positive recommendations from analysts, with varying degrees of bullish sentiment. Wedbush analysts, in particular, highlight Amazon as having the most potential upside among the internet stocks they cover, naming it a "top pick" for 2024. Beyond the ongoing growth of e-commerce, Wedbush analysts point to Amazon's status as the largest retail media network globally (excluding China), positioning it to benefit from the rapid growth of digital advertising and Prime Video monetization.