Amazon stock price rally has beaten analyst expectations for 2023. The shares of the e-commerce giant and tech conglomerate are set to close the year with 81.35% gains, which is unbelievable for a stock with such a high market capitalization.
With this price action, NASDAQ: AMZN has most of its 2022 losses. However, it still remains almost 20% down from its 2021 all-time high of $188.65. More upside could be waiting for the stock in 2024 as the outlook remains very positive.
At the time of writing, Amazon stock stood at $152.39. The shares have been sideways for the last two weeks due to very low trading volume during the holiday season. However, volatility may increase in the coming weeks as the volume picks up in the new year.
The US stock market is hitting its record highs as the monetary tightening cycle of the Federal Reserve nears its end. Analysts are expecting as many as six rate cuts in 2024 which may increase the liquidity in the coming months.
However, things are not as simple as they apparently look. Even though Amazon stock price forecast is currently looking very bullish in almost every aspect, the US inflation still remains well above the Fed’s target of 2%. If inflation becomes sticky in the coming months, the US central bank might be forced to take a hawkish approach once again.
Technical analysis reveals that there is still more upside for AMZN as it may retest $162-$170 in the coming weeks.
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