Amazon Stock Prediction For 2019: Two Emerging Important Tailwinds For Amazon

Summary:

  • Amazon’s stock has significantly dropped since December 3. It is now more affordable to own.
  • Amazon is a must-have investment for your 2019 portfolio. Aside from its growing presence in India, Amazon can now cater to online shoppers in more countries.
  • Investors can turn more optimistic on Amazon when the company starts showing better international net sales.
  • Non-U.S. citizens/residents can now shop on Amazon.com and pay using local currencies at Western Union remittance/money transfer partner outlets.
  • Amazon also has another obvious tailwind from its decision to sell its own brand of toys. The global toy industry’s revenue last year was $83 billion.

Investors are turning more bearish on Amazon (AMZN). Since December, AMZN’s price has notably dropped from $1,772.36 to $1,343.96 (from December 3 to December 24). However, I see this as an opportunity to find cheaper buy-in windows to own more AMZN shares.  In spite of the current negative market emotion over AMZN, my fearless 12-month forecast is that it can beat its 52-week high of $2050.50.

The average 12-month price target for AMZN (made by 37 Wall Street analysts) is $2,150.74. My 12-month PT for AMZN is $2,250.

(Click on image to enlarge)

(Source: TipRanks)

The logic behind my optimism over Amazon is from two upcoming sizeable tailwinds. First of these tailwinds is its new cross-border payments processing partnership with Western Union (WU). Western Union partner agents/outlets in more than 200 countries will eventually start accepting local currency payments for good purchased on Amazon’s U.S. online marketplace.

The ‘Buy global, pay local’ campaign by Amazon and Western Union will help more non-U.S. residents become long-term customers of Amazon.com. Like it or not, there are millions of people like me who do not like using our credit cards/debit cards to purchase items online. It is much safer to go to the nearest Western Union partner agent and pay in local currency for Amazon purchases.

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Disclaimer: Please note-for trading decisions use the most recent forecast.

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