Investing.com – Amazon's share achieved a strong performance in 2024, bypassing both Nasdak and the e -commerce sector with 44 % gains, compared to 25 % for the Nasdaq index. This increase has been supported by expanding the price ratio to sales, which increased from 2.3 times at the beginning of 2024 to 3.1 times.
Analysts at the Bank of America referred to Amazon Web Services (AWS) and the growth of the retail margin as they are the main drivers of Amazon (Nasdaq :). And they expect the cloud -based cloud growth to remain a great opportunity within the sector in 2025.
Moreover, the retail margin is expected to continue to pay the growth growth that exceeds the growth of Amazon's peers. Analysts also indicated that Amazon is in a position to deal with the impact of the high value of the US dollar, which may benefit the margins of the cloud.
Looking forward to 2025, Bank of America has set many investment positives of Amazon shares. This includes a strong cycle of AWS artificial intelligence, increasing the efficiency of the retail margin, a multi -year production cycle driven by robots, an increase in Prime Video advertising revenues, providing costs from discounts in medium -level management, and normalization of retail online. It meets or exceeds expectations for the fourth quarter and the holiday season.
Meanwhile, the investment bank also determined the potential risks. These are the effect of new definitions on sizes and margins, and investments in new areas such as the Kuiper project that can suffocate margin progress, high expectations and potential margin pressure on AWS.
The increasing competition from Wall Mart (NYSE :), and relatively high evaluation compared to the price ratios to historical sales and price rates to the profits of Amazon. Moreover, with 79 evaluation of purchase, Amazon appears to be the agreed preferred arrow, which may represent his set of challenges.
Regarding the definitions, media reports indicate that no new definitions will be signed on the first day of President Trump in his post. Instead, the administration plans to issue a large -scale trade note to study potential reforms with China, Mexico and Canada.
In light of these positives and negatives, Bank of America reduced its estimate for 2025 slightly to Amazon due to the recent rise in the US dollar, which led to a reduction in international revenue expectations by about $ 7 billion. This adjustment is partly compensated with AWS margins slightly higher.
For 2025, Bank of America estimates revenues/profit/share return on the share in line with the principles of accounting generally accepted in the amount of 700 billion dollars/79.5 billion dollars/6.10 dollars, a slight decrease from the previous number of 707 billion dollars/79.9 billion dollars/6.13 dollars . Even with these modifications, Bank of America is still expected to appear more stable in revenue on an annual basis in the first half of 2025 and better expansion of the margin compared to its large capital counterparts.
Analysts led by the Justin Post said in a memo that the company continues to “see Amazon as a relatively strong game in the field of artificial intelligence.”
