Analysts Say It’s ‘Never Been Stronger’ Ahead of Q3 Data

With the stock bouncing back in a big way recently, many analysts have noted that Amazon (AMZN) has ‘never been stronger’ as it heads into pivotal Q3 earnings data. Indeed, the company is seeking to continue returning to form following a second-quarter slump that worried some investors.

The company did start the year as one of the most popular investments on Wall Street. Yet, that changed during the summer months, when July started to see the stock lose some of its value. Yet, there are many who expect a strong end to the year that could fuel a monumental start to 2025.

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Amazon to Continue Bounceback as Analysts Expect Big Things in Q3

There are few companies as large or as prominent as Amazon. That fact informed increasing interest in the firm heading into the year. In the early months of 2024, it certainly paid off that faith, proving to be a stock that was rapidly growing in value with only upside ahead.

Over the first six months of this year, shares in AMZN increased by 20%. Moreover, it set record highs and reached a $2 trillion market cap in June. Yet, a turnaround was on the cards, with the stock dropping in July and August. That was only capped by a poor Q2 performance that had a lot of investors worrying.

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Those concerns may be misplaced, as experts are still immensely high on the company. Indeed, analysts have noted that Amazon ‘has never been stronger’ as Q3 results look to fortify that message. Amazon Web Services, the company’s cloud-based computing business, has seen revenue growth increase amid rapidly surging demand.

“Objectively, Amazon has never been stronger—they are the market leader in cloud and e-commerce, with both business units growing steadily and profitably,” Bernstein’s Mark Shmulik wrote in a Friday report to clients. Moreover, he added the company is “third in digital advertising, making a strong push to close the gap to the two players ahead.”

Additionally, he assured Amazon is still outperforming the S&P 500 in 2024. While it has a buy rating, there is the expectation that the stock is only being held back by investor concerns. On a strictly data front, things couldn’t be better for AMZN.