Time to Buy Amazon Stock? The Longest Monthly Win Streak

Investors eagerly anticipate Amazon‘s upcoming annual Prime Day sales event, scheduled for mid-July, contributing to the stock’s rally. For those looking to buy Amazon stock, J.P. Morgan analyst Doug Anmuth, who has maintained an overweight rating on Amazon for the past three years, expects the company to experience a revenue boost of around $5 billion from this year’s Prime Day, representing a 13% increase from the previous year.

Anmuth noted the rapid improvement in Prime delivery speeds expected in 2023, which he believes will enhance customer consideration and purchase frequency.

Impressive Performance and Milestones for Amazon Stock

On Friday, Amazon’s stock rose by 1.9% to $130.36, its highest closing price since September 9, 2022. Over the past four months, the stock has surged by an impressive 38.3%, outperforming the S&P 500 index’s 12.1% rise during the same period.

This marks Amazon’s longest monthly win streak since January 2020, prior to the onset of the COVID-19 pandemic. Additionally, it represents the stock’s most robust four-month performance between April and August 2020, when it surged by 39.5%, driven by the surge in online shopping caused by the pandemic.

Investing in Amazon: Steady Growth and Comparisons

Analyst Youssef Squali at Truist reaffirmed his buy rating for Amazon’s stock, highlighting the significance of the “Buy with Prime” (BwP) offering in facilitating online retailers’ direct-to-consumer (DTC) strategies during Prime Day. BwP enables third-party merchants on Amazon’s platform to provide Prime services, including seamless payment and free delivery.

Amazon’s stock has experienced a remarkable 59.3% surge since hitting a near four-year low of $81.82 on December 28, 2022, surpassing the S&P 500’s 17.6% rise during the same period.

Since the beginning of this year, both AMD and Amazon’s stocks have witnessed significant increases, with AMD rising by 70% and Amazon by 53%.

Amazon Expands AI Services on AWS

In line with the rapidly evolving market, considering Amazon and Advanced Micro Devices (AMD) as potential additions to investment portfolios proves enticing. While AMD excels in the hardware aspect of AI, Amazon has made notable strides in software and recently introduced two promising generative AI services on its Amazon Web Services (AWS) platform.

Amazon has expanded AWS’ generative AI services by introducing Amazon Bedrock, a foundation model developed from machine learning and diverse data points. The model boasts advanced generative capabilities, such as creating entire ad campaigns based on a company’s product description.

As the AI industry continues to expand, both AMD and Amazon stock split offer compelling opportunities, with each excelling in different aspects of the sector. Evaluating these stocks based on their potential for investment is a prudent step for investors aiming to capitalize on AI’s ongoing growth.