With December approaching, many investors are considering how to position their portfolios for 2024 to make them richer. While adjusting for any one year is possible, it's much less stressful and sometimes more profitable to align your portfolio with a long-term horizon, like thr
Over the last 10 years, Tesla (NASDAQ: TSLA) stock has returned a jaw-dropping 2,900% to its long-term shareholders, making many millionaires -- and turning its largest shareholder, CEO Elon Musk, into a multibillionaire. And while few people will ever be lucky enough to get in o
Wall Street has returned to a growth trajectory in November after three consecutive months of negative closing. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — posted positive returns in the las
Amazon (NASDAQ: AMZN) has become a favorite on Wall Street in 2023 as improvements in its e-commerce business and an expansion into artificial intelligence (AI) have sent its shares soaring 73% since Jan. 1. The company has made an impressive turnaround this year after posting si
Amazon (
NASDAQ:AMZN
) recently revealed that it will start selling cars on its online platform, starting with vehicles from Hyundai Motor (
HYMLF
). This prompts us to ask: Will Amazon become a threat to the leading e-commerce platform for buying and selling used cars, Carvana (
NYSE:CVNA
)? According to
CVNA’s CEO, Ernie Garcia, the online car market is vast, offering growth opportunities for all the players. Further, he expects AMZN to expand the e-commerce market and doesn’t see it as an immediate threat.
Speaking to CNBC, Garcia highlighted that Carvana is a leading e-commerce platform for used cars. It sold 80,987 retail units in the third quarter, translating into an annual run rate of over 320,000 vehicles. Further, he highlighted that CVNA is delivering new experiences to people buying and selling cars online, supporting its growth.
It’s important to highlight here that the used car market is already highly competitive, and Garcia sees no impact on the margins even if Amazon enters the online car market. Further, he foresees no significant change in the company’s sales mix.
With that backdrop, let’s look at the Street’s recommendation for CVNA stock.
Is Carvana Stock Expected to Go Up?
Carvana stock has witnessed a massive recovery in its share price since the beginning of the year. CVNA stock has gained nearly 599% year-to-date and is battling macroeconomic headwinds. This is why analysts remain sidelined on Carvana stock.
It has received one Buy, 12 Hold, and three Sell recommendations for a Hold consensus rating. Moreover, the
average CVNA stock price target of $37.08 implies an upside potential of 11.96% from current levels.
Bottom Line
Amazon may not pose an immediate challenge to Carvana. Additionally, Amazon’s initial focus will be selling new cars, whereas Carvana predominantly generates revenue from selling used cars. Nevertheless, Carvana is grappling with macroeconomic challenges, such as the heightened interest rate environment, which decreases vehicle affordability and adversely impacts its retail vehicle sales revenue. This near-term challenge is reflected in analysts’ Hold consensus rating on CVNA stock.
Disclosure
Artificial intelligence (AI) is a hot topic in 2023, with many companies touting how they're using the technology. For some, it's debatable whether AI will actually help their companies and drive their stock price higher once the market's fervor subsides.
The macroeconomic headwinds continue to hurt consumers’ discretionary spending. Nonetheless, Goldman Sachs' survey shows that holiday season sales could exceed expectations. Moreover, the survey reveals that Amazon (
NASDAQ:AMZN
) and Walmart (
NYSE:WMT
) remain the top shopping destinations, indicating they are the most promising holiday season stocks.
Brooke Roach of Goldman Sachs noted that the survey indicates that 61% of respondents plan to spend the same or more on holiday gifts this year, reflecting a seven-percentage-point increase from the previous year.
With this backdrop, let’s look at the Street’s forecast for AMZN and WMT stocks.
What Do Analysts Say About Amazon?
Amazon is expected to benefit from the slew of measures it has taken to improve customers' shopping experiences, such as
social media ads and fast delivery. Moreover, its focus on offering value to consumers through deals and promotions will likely drive its Prime membership and overall sales.
Wall Street analysts are bullish about Amazon. The stock has received 40 unanimous Buy recommendations, translating into a Strong Buy consensus rating. AMZN stock has risen by about 74% year-to-date. Despite the significant growth, analysts see further upside potential. The
average AMZN stock price target of $175.51 implies an upside potential of 20.11% from current levels over the next 12 months.
What is the Prediction for Walmart Stock?
Thanks to its value proposition compared to peers, Walmart is poised to attract more customers to its stores and website. Moreover, the retailer offers discounted access to its Walmart Plus memberships and plans to grant members early access to the best savings events throughout the holiday season. This will support its revenue during the crucial fourth quarter.
Given the positives, analysts maintain their bullish outlook on Walmart stock. With 25 Buy and five Hold recommendations, WMT stock has a Strong Buy consensus rating. Further, the
average WMT stock price target of $181.14 implies an upside potential of 16.64% from current levels.
Bottom Line
Amazon and Walmart continue to invest in their e-commerce platforms and physical stores to widen their omnichannel advantage over their peers. Moreover, the focus on driving customer engagement and maintaining competitive price gaps positions them well to capitalize on holiday sales. While both stocks are rated a Strong Buy, AMZN offers a higher upside potential from the current levels.
Disclosure
OpenAI's board of directors approached rival Anthropic's CEO about replacing chief Sam Altman and potentially merging the two AI startups, according to two people briefed on the matter.
Sam Altman’s ousting as CEO of OpenAI sent shockwaves through the tech world and grabbed headlines this morning after he was selected to lead Microsoft’s MSFT “new advanced AI research team”. Altman co-founded OpenAI in 2015 with
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