Amazon inc also called as AMZN stock had reached a new milestone for the first time in many years and is planning on hitting another huge milestone during the start or the end of the new year that is 2021.
Amazon had received a target goal from the pivotal researcher known as Michael Levine, who had given Amazon a target to reach the goal price of 4500$ in their stock price.
He did this as it thought that Amazon had great potential but needed a boost, so he thought that challenging Amazon would give them a boost and make them work to their fullest potential.
After the pandemic when everything was reopening Amazon had their stock price at 3125$ which was a rise from their previous years stock price as during the pandemic all the centres of Amazon were shut down and there was no business at all so Amazon was facing a lot of loss which made the investors unhappy.
The increase of the stocks
Michael Levine had given them the challenge to increase their stock price by about 15% so that Amazon could realize that they can become an even greater company and will be able to beat Apple and Microsoft and become the one ranked elite company in the world.
The analysts at Amazon have the wrong information about Amazon’s advertisement as they think that it can only make up to 5% of the revenue.
Michael Levine noted that if Amazon turns its advertisement into a business, then Amazon will be able to make up to 300 % of profit in just a matter of a year as many people get influenced by Amazon’s marketing and come to buy the products from their website after seeing the advertisement and also looking at the low price.
Because of this strategy, Amazon is able to gain many more customers as the prices as well the creative advertisement of Amazon is able to attract many customers and also these customers will suggest other people come and buy from Amazon as it gives warranty and guarantee of a product that if anything happens to the product, then Amazon will send an immediate replacement for that particular product.
In 2020 Amazon had made about 8 Billion$ in revenue in just about a month. This is because Amazon is getting more sales in 2020 as it had earlier and so it will increase to almost 13 Billion$ as it has been analyzed and Amazon is currently the third company in advertising after Google and Facebook. If you want to invest in this stock, you can check AMZN stock news before that.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.