Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    StockNews24StockNews24
    Subscribe
    • Shares
    • News
      • Featured Company
      • News Overview
        • Company news
        • Expert Columns
        • Germany
        • USA
        • Price movements
        • Default values
        • Small caps
        • Business
      • News Search
        • Stock News
        • CFD News
        • Foreign exchange news
        • ETF News
        • Money, Career & Lifestyle News
      • Index News
        • DAX News
        • MDAX News
        • TecDAX News
        • Dow Jones News
        • Eurostoxx News
        • NASDAQ News
        • ATX News
        • S&P 500 News
      • Other Topics
        • Private Finance News
        • Commodity News
        • Certificate News
        • Interest rate news
        • SMI News
        • Nikkei 225 News1
    • Carbon Markets
    • Raw materials
    • Funds
    • Bonds
    • Currency
    • Crypto
    • English
      • العربية
      • 简体中文
      • Nederlands
      • English
      • Français
      • Deutsch
      • Italiano
      • Português
      • Русский
      • Español
    StockNews24StockNews24
    Home » 5 reasons to consider Amazon for a Stocks and Shares ISA
    News

    5 reasons to consider Amazon for a Stocks and Shares ISA

    userBy userJune 8, 2025No Comments3 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    At first glance, I can see why Amazon (NASDAQ: AMZN) might not appeal to some Stocks and Shares ISA investors. The company is already a $2.2trn juggernaut and has well-established operations around the world. Surely, one may assume, it can’t get too much bigger.

    Here are five reason why I think Amazon stock could still make for a tremendous long-term investment.

    Bullish analysts

    The first reason is that Wall Street remains very bullish. Among 71 analysts rating the stock in the past three months, a whopping 95.7% see it as either a Buy or Strong Buy. Only three rate it as a Hold, and none recommend Selling.

    Of course, investors shouldn’t rely solely on the views of brokers to pick stocks. One quarterly earnings miss from Amazon could quickly see sentiment shift. Most of Wall Street is focused on the next couple of quarters, rather than the longer term.

    Nevertheless, it’s still the job of these experts to know Amazon’s business inside out. So, I find it reassuring that such an overwhelming majority of them are bullish on the stock.

    For what it’s worth, the consensus 12-month share price target among 61 of these analysts is $238. That’s roughly 13% higher than the current price.

    Surging profits

    The fundamental driver of a stock price over time is an increase in earnings. Therefore, it’s encouraging to see that Amazon’s bottom line is tipped to grow significantly.

    Last year, the tech giant reported earnings per share (EPS) of $5.53 from revenue of $638bn. By 2028, those figures are expected to be $914bn and $10.97, respectively. So, almost a doubling in EPS.

    Meanwhile, free cash flow is forecast to more than double over this time, despite the company investing heavily in various growth initiatives.

    One thing that could throw a spanner in the works here though is rising US inflation due to tariffs. If this keeps spiking higher, consumers could reign in spending, negatively impacting growth in Amazon’s core e-commerce operation.

    In this scenario, more people might turn to cheap shopping apps like Temu and Shein. That said, these firms are also facing challenges from tariffs, forcing them to hike prices.

    Margin expansion

    Not only are Amazon’s profits expected to motor higher, but margins are also likely to improve. Indeed, this was one of the reasons why billionaire Bill Ackman recently took a stake for his hedge fund (Pershing Square).

    We think [efficiency] will allow for more profit margin expansion at a high rate of revenue growth.

    Pershing Square Holdings, Q1 2025 earnings call

    Amazon is using artificial intelligence (AI) to improve efficiency across its business, which should translate into better margins.

    Future technology trends

    Speaking of AI, the company is investing massively in the technology. For 2025, it has allocated over $100bn to capital expenditures, much of it AI-related infrastructure/data centres.

    According to The Information, Amazon is also investing in humanoid robots that could one day deliver packages to front doors. It’s also trialling drone deliveries and its Zoox self-driving cars.

    Therefore, the firm remains at the centre of multiple cutting-edge technology trends.

    Attractive valuation

    Last but certainly not least, the stock is currently trading at 33 times forward earnings. Historically, that’s very low for Amazon, and makes this a stock worth considering right now for long-term investors.



    Source link

    Share this:

    • Click to share on Facebook (Opens in new window) Facebook
    • Click to share on X (Opens in new window) X

    Like this:

    Like Loading...

    Related

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous Articleraw material and mineral rare earth news
    Next Article “Green Aviation” Exception in GOP Budget Bill Is a “Big, Beautiful” Bipartisan Boondoggle – Mother Jones
    user
    • Website

    Related Posts

    This FTSE 100 dividend superstar is at a 52-week low! Time to consider buying?

    June 8, 2025

    Up 16% in a month – now analysts reckon Glencore shares could hit 377p! Is it possible?

    June 8, 2025

    £10,000 invested in Lloyds shares 12 months ago is now worth…

    June 8, 2025
    Add A Comment

    Leave a ReplyCancel reply

    © 2025 StockNews24. Designed by Sujon.

    Type above and press Enter to search. Press Esc to cancel.

    %d