Connect with us

Hi, what are you looking for?


Amazon attempts to break below support, but Evercore thinks it’s a “Buffett buy” stock

After losing half of its value year-to-date, investors seem not done yet with, Inc. (NASDAQ:AMZN) stock. AMZN traded lower on Tuesday as stock markets weighed on the impending recession.

Amazon stock has now lost 8.57% in five days amid concerns about higher rates and the state of the economy. The risks have been heightened by the latest Bank of America report showing the possibility of a recession in the first quarter of 2023. Economists note that the recent 50 bps rate hike by the Federal Reserve did little to avert the recession outlook for stocks. The analysts project a negative GDP for the US next year.

Nonetheless, Evercore ISI Research has labelled Amazon stock a “Buffet buy” despite the bear pressure. According to the analysts, Amazon has three levers it can tap to unlock value heading next year.

The first level of value mentioned by Evercore is Amazon’s ambitious projects. The analysts laud Amazon’s investment into robotics, video entertainment, Alexa, and AV as some of the growth drivers. The second lever is the untapped advertisements through Amazon Prime Video. The analysts say this is an easy opportunity for the tech giant. Finally, analysts expect Amazon to buy back shares using its cash pile of nearly $80 billion. These are expected to boost the share price.

With the growth levers, Evercore says these are factors that could make Warren Buffet buy Amazon again. The investor owns around $1.2 billion of the stock, bought through Berkshire Hathaway in 2019.

AMZN stock outlook and analysis

AMZN Chart by TradingView

Amazon stock maintains a downtrend on the daily chart. The stock trades at a support zone with weakening momentum. The MACD indicator is bearish.

Is AMZN a good investment?

Investing in Amazon now is premature. Both technical and fundamental factors are not favourable. Nonetheless, Evercore has a price target of $150 for the stock, although the analysts think this should be a long-term buy.

The post <strong>Amazon attempts to break below support, but Evercore thinks it’s a “Buffett buy” stock</strong> appeared first on Invezz.

You May Also Like


Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...


Artificial Intelligence has been the buzz word in financial markets ever since Microsoft announced its multibillion-dollar investment in ChatGPT (read more). According to Futurum...


“I will make no apologies that we are investing to make America strong. Investing in American innovation, in industries that will define the future,...


Mimiq, Inc is announcing today the launch of their new product, Mimiq Track, at CES as part of their latest product line to operate...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023