Sundaram: Amazon isn't recession-proof, but it's recession-resilient (2024)

FAQs

Is Amazon stock recession proof? ›

The company has managed to re-accelerate AWS growth and regain market share in their e-commerce retail division, capturing 28% of all incremental retail sales in the U.S.​ The company is well positioned in the event of a recession, both on the e-commerce side and on the enterprise side.

What Does Recession Resistant Mean? An entity that is not significantly affected by recessions is considered recession resistant. Recession resistance can apply to products, companies, jobs, or even industries.

What does 'recession-proof' mean? Something that's “recession-proof” isn't significantly impacted by the effects of a recession. While often used to describe jobs, the term can also apply to investments. These include certain companies, sectors and industries that are more resilient during times of economic hardship.

Examples of recession-proof assets include cash and cash-equivalent investments, such as three-month U.S. Treasury bills, while examples of recession-proof industries are consumer staples, utilities, and healthcare, among others.

Amazon stock for the long run

After all, anyone who put $1,000 into Amazon stock 20 years ago has enjoyed truly market-crushing returns. For its entire life as a publicly traded company, AMZN has generated an annualized total return of more than 32%.

Of the 47 analysts who recommended Amazon in June, 44 rated it a buy or a strong buy. Forecasters predict that Amazon will reach $200 per share a year from now and will continue to rise to $250 per share at the end of 2026. In 2027, the prediction is for a price of $300, and $250 by the end of 2028.

Toothpaste, deodorant, shampoo, toilet paper, and other grooming and personal care items are always in demand. Offering these types of items can position your business as a vital resource for consumers during tough times.

McDonald's (MCD)

The restaurant sees robust sales during recessions because it is synonymous with budget meals. Typically, consumers drop expensive chains, opting for cheaper meals. The value menu enables the chain to profit at the expense of more expensive chains.

Where to put money during a recession. Putting money in savings accounts, money market accounts, and CDs keeps your money safe in an FDIC-insured bank account (or NCUA-insured credit union account). Alternatively, invest in the stock market with a broker.

What is the best stock to buy in a recession? ›

The best recession stocks include consumer staples, utilities and healthcare stocks. Consumers can't do without these companies, no matter how bad the economy gets.

Companies in the business of providing tools and materials for home improvement, maintenance, and repair projects are likely to see stable or even increasing demand during a recession. So do many appliance repair service people. New home builders, though, do not get in on the action.

Recession stocks are defensive stocks that can sustain growth or limit losses during an economic downturn because their products or services are always in demand. The best recession stocks include consumer staples, utilities and healthcare stocks.

Financial Strength

We believe Amazon is financially sound. Revenue is growing rapidly, margins are expanding, the company has an unrivaled scale, and its balance sheet is in great shape.

Amazon (AMZN) Stock Price Prediction in 2025

The current consensus 1-year price target for Amazon stock is $218.23, which is an 18.03% upside from today's stock price of $184.89. Of all the analysts covering Amazon, the stock is a consensus buy, with a 1.32 “Buy” rating.