Amazon NASDAQ:AMZN And Meta NASDAQ: META pull back from the 2024 third quarter highs and give investors a second chance to fill up. Up more than 30% and 55% year-to-date respectively, these stocks are experiencing a natural correction in sustained bull markets and provide entry points for new and follow-on investments.
The caveat is that a correction could push their shares lower further, providing a more attractive entry, but the decline is likely to be small and short-lived relative to the trend. Both have analyst support and solid forecasts for 2025, including double-digit growth, margin expansion and near certainty that they will beat their consensus estimates, which will support the price action and take it to new highs over time.
Amazon: the perfect combination of technology and retail
Amazon.com stock forecast today
$235.77
Growth potential 19.61%Moderate purchase
Based on ratings from 43 analysts
| High forecast | $285.00 |
|---|---|
| Average forecast | $235.77 |
| Low forecast | $186.00 |
Amazon.com Stock Forecast Details
Amazon is the ultimate consumer and AI play. Its retail platform is supported and supported by AWS AI enhancements including operational excellence, consumer experience and services, not to mention its position in the artificial intelligence and data center industries. Year to date it is up 35% and is forecast to rise another 35-45% from the critical support target. This target is near the summer high of $200.50, which is the starting point for technical traders and investors.
Analyst trend for 2024 is bullish and suggests at least 15% upside potential, with the mid-November consensus pegged at $235 and the revised trend positive. Consensus is up more than 40% year-over-year, with premium share prices up another 4,000 basis points. Analysts tracked by MarketBeat show high confidence in the consensus and provide strong tailwinds for the market, with 95% rating it a Buy and 65% of targets posted for third-quarter results.
Third quarter results and business trends are good. The company outperformed revenue and profit targets, maintaining double-digit revenue growth and expanding margins. All segments and categories contributed to growth, but AWS stood out. AWS has nearly doubled the pace of Amazon’s core business and is increasing its contribution to the network. The 2025 forecast calls for Amazon to grow 10% systemwide, with adjusted earnings per share rising a more robust 15%.
Cash flow and free cash flow are drivers of Amazon’s stock price. The company produced leverage and free cash flow, with free cash flow more than doubling. The improvements allowed the company to maintain its cash position while investing in growth and repurchasing a significant number of shares. In the third quarter, shares fell 1.6% year-over-year, bringing the year-to-date total to over 2.3%. Buybacks are expected to continue in the fourth quarter of 2024 and 2025.
Meta Platforms invests in technology: will grow by another 50% in 2025
Meta Platforms stock forecast today
$634.10
Growth potential 13.41%Moderate purchase
Based on ratings from 43 analysts
| High forecast | $811.00 |
|---|---|
| Average forecast | $634.10 |
| Low forecast | $360.00 |
Meta Platforms stock forecast details
Meta Platforms shares are up more than 55% year to date and could rise another 50% over the next 12 months. The consensus price target reported by MarketBeat suggests a 15% upside, but trends suggest that’s a low target. MarketBeat tracks 43 analysts covering the stock; they show high confidence, with a Buy rating of 86% and a positive revision trend. The consensus target has risen nearly 100% over the past year due to the company’s continued outperformance, increasing nearly 3% from October to November, with the cap at $811, nearly 50% above the critical support target. The most recent changes are in the upper range above consensus and the trend is likely to remain positive. A critical support target is near the summer high, around $542.
Meta’s results for 2024 are good. The company outperforms competitors in revenue and profit as internal efficiencies are combined with AI expertise and applications. User metrics are also improving, leading to leverage, which improves dividend prospects. Meta is a promising dividend growth stock and can be expected to increase its payout in 2025. Business prospects for 2025 are also optimistic. Revenue is forecast to grow 15%, with earnings per share growing slightly slower.
Slightly slower earnings per share growth is one reason why stocks are struggling to grow in November. However, the decline in profits comes due to increased spending on artificial intelligence and other technological advances, including virtual reality. The company and others have already proven that increased spending on AI pays off in many ways, increasing revenues and improving earnings quality, which should be visible in results over the next 12 to 24 months.
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