The Amazon stock (NASDAQ: AMZN) price is up by 18 percent in the first four weeks of the year. In yesterday’s trading session, Amazon stock closed the markets up by 2 percent, continuing its impressive start to the year.
Amazon’s Cost-Cutting Measures
After dropping by almost 50 percent in 2022, Amazon is up by almost 20 percent in the first few weeks of the year. The impressive start to the year has partly been attributed to measures the company has been taking to address its revenues and bottom line. One of these measures has been the recent cost cuts that have included an 18,000 reduction in its workforce.
Other reports also show that Amazon has started selling to sell some of its offices in its efforts to cut costs. In a recent Bloomberg report, Amazon is expected to sell an empty office in California that it bought 16 months ago for $123 million. The move has been seen by many as a reversal of its expansion plans in other areas.
Amazon Web Services
Based on recent reports, the company looks to be focusing its efforts on its web services business. This week, Virginia Gov. Glenn Youngkin announced the company would invest $35 billion by 2040 in the state by 2040. The money would mostly go to building data center campuses.
The move will see the company focus on one of its most profitable products. This change is likely to have a long-term impact on its performance in the markets.
Amazon Stock Price Forecast
As seen from the above fundamental analysis, cost-cutting measures look to be having an impact on the markets. After dropping to below $100, investors also consider the stock to be cheap and anticipate its value will go up in the coming sessions.
Therefore, my Amazon stock price target is to the upside. I expect the current price action that has resulted in its stock value to surge by 18 percent to continue. There is a high likelihood that we might see it trade above the $110 price level in the coming sessions.