US Stocks Decline as Boeing Negotiates Record Jet Order with Saudi Arabia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy AMZN?
Source: CNBC
- Market Weakness: The S&P 500 fell 1% on Thursday, marking a year-to-date decline, while the Nasdaq dropped 1.4%, indicating a continued rotation out of tech stocks as investors seek safer assets amidst market volatility.
- Boeing Stock Rise: Boeing shares increased nearly 2% following Bloomberg's report of negotiations with Saudi Arabia for a record jet order, reflecting growing market confidence in Boeing's improved delivery capabilities and potential future orders.
- Costco Sales Surge: Costco's core comparable sales rose 6.4% in January, surpassing the consensus estimate of 5.1%, contributing to a stock increase of over 1%, indicating a strong recovery in retail performance driven by sales growth in both food and non-food categories.
- Salesforce Decline: Salesforce shares fell another 4.5%, highlighting concerns in the enterprise software sector as fears grow that AI tools may diminish the demand for traditional software solutions, leading to broader declines in the software market.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 222.690
Low
250.00
Averages
294.69
High
340.00
Current: 222.690
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
Investment Potential of Amazon and Booking Holdings
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- Advertising Revenue Growth: Amazon's advertising services have an annual revenue run rate of $85 billion, with Q4 ad revenue increasing by 22% year-over-year, as brands shift ad spending to digital platforms, significantly enhancing its overall profitability.
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See More
Investment Potential of Amazon and Booking Holdings
- Amazon's Innovation Edge: Amazon's online retail business maintains a competitive advantage through its extensive infrastructure and same-day delivery, with its Rufus AI shopping assistant reaching 250 million users in Q3 and projected to generate $10 billion in incremental annual sales by 2025.
- Advertising Revenue Surge: Amazon's advertising services have achieved an annual revenue run rate of $85 billion, with Q4 ad revenue increasing by 22% year-over-year, positioning the company favorably as brands shift ad spending to digital platforms.
- Cloud Services as Profit Engine: Amazon Web Services (AWS) saw a 24% year-over-year revenue increase in Q4, contributing roughly half of the company's profits, with investments in custom chips and data center capacity keeping it at the forefront of AI service delivery.
- Booking Holdings' Sustained Growth: Booking Holdings recorded 323 million room nights in Q3, an 8% year-over-year increase, driving a 13% rise in revenue, with management targeting 8% annual growth in gross bookings and revenue, translating to a 15% increase in adjusted earnings per share.
See More
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Amazon Shares Drop: Amazon's shares fell by 10% in Frankfurt following the announcement of significant capital expenditures.
Impact of Results: The decline in stock price is attributed to investor reactions to the company's financial results and spending plans.
See More
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- Q4 Operating Income: Amazon's Q4 operating income includes an estimated $730 million in severance costs.
- Asset Impairments: The company reported $610 million in asset impairments related to physical stores.
See More
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- Surge in Layoff Plans: January 2026 saw the highest layoff plans since 2009, indicating a severe job market situation that could lead to further economic deterioration, impacting consumer confidence and spending.
- Weak Job Additions: The private sector added only 22,000 jobs, significantly lower than the 140,000 added during the same period last year, suggesting a sluggish economic recovery that may lead to decreased household income and consumer spending.
- Increase in Unemployment Claims: Initial claims for unemployment benefits unexpectedly rose to 231,000 in the last week of January, reflecting the impact of severe winter weather on the job market, potentially exacerbating economic uncertainty.
- Disconnection Between Growth and Employment: Despite GDP growth reaching an annual rate of 4.4% in Q3 last year, challenges remain for low-income households, highlighting a “K-shaped” recovery that may exacerbate social inequality.
See More
Investment Prospects for Amazon and Booking Holdings
- Amazon's Innovation Edge: Amazon's online retail business maintains a durable competitive advantage through its extensive infrastructure and same-day delivery services, with its Rufus AI shopping assistant reaching 250 million active users in Q3 and projected to generate $10 billion in incremental annual sales by 2025.
- Advertising Revenue Surge: Amazon's advertising services have achieved an annual revenue run rate of $85 billion, with Q4 ad revenue increasing by 22% year-over-year, positioning the company to benefit as brands shift ad spending to digital platforms.
- Cloud Service Profitability: Amazon Web Services (AWS) saw a 24% year-over-year revenue increase in Q4, contributing roughly half of the company's profits, with investments in custom chips and data center capacity keeping it at the forefront of AI services, and analysts expect earnings per share to grow at an annualized rate of 17% in the coming years.
- Booking Holdings' Market Position: Booking Holdings attracts users through loyalty rewards and its Connected Trips initiative, achieving 323 million room nights in Q3, an 8% year-over-year increase, driving a 13% rise in revenue, with management targeting an 8% annual growth rate moving forward.
See More
Investment Potential of Amazon and Booking Holdings
- Amazon's Market Advantage: Amazon's competitive edge in e-commerce stems from its extensive infrastructure and same-day delivery services, with its Rufus AI shopping assistant reaching 250 million active users in Q3, projected to generate $10 billion in incremental annual sales by 2025, further solidifying its market leadership.
- Advertising Revenue Growth: Amazon's advertising services have an annual revenue run rate of $85 billion, with Q4 ad revenue increasing by 22% year-over-year, as brands shift ad spending to digital platforms, significantly enhancing its overall profitability.
- Strong Cloud Computing Business: Amazon Web Services (AWS) saw a 24% year-over-year revenue increase in Q4, contributing nearly half of the company's profits, with investments in custom chips and data center capacity maintaining its competitive edge in the AI services market, expected to continue driving profit growth.
- Sustained Growth for Booking Holdings: Booking Holdings recorded 323 million room nights in Q3, an 8% year-over-year increase, driving a 13% rise in revenue and a 19% increase in adjusted earnings per share, with plans to achieve 8% annual growth in gross bookings and revenue, reflecting strong market demand and pricing power.
See More
Investment Potential of Amazon and Booking Holdings
- Amazon's Innovation Edge: Amazon's online retail business maintains a competitive advantage through its extensive infrastructure and same-day delivery, with its Rufus AI shopping assistant reaching 250 million users in Q3 and projected to generate $10 billion in incremental annual sales by 2025.
- Advertising Revenue Surge: Amazon's advertising services have achieved an annual revenue run rate of $85 billion, with Q4 ad revenue increasing by 22% year-over-year, positioning the company favorably as brands shift ad spending to digital platforms.
- Cloud Services as Profit Engine: Amazon Web Services (AWS) saw a 24% year-over-year revenue increase in Q4, contributing roughly half of the company's profits, with investments in custom chips and data center capacity keeping it at the forefront of AI service delivery.
- Booking Holdings' Sustained Growth: Booking Holdings recorded 323 million room nights in Q3, an 8% year-over-year increase, driving a 13% rise in revenue, with management targeting 8% annual growth in gross bookings and revenue, translating to a 15% increase in adjusted earnings per share.
See More
