Hold Up! Don’t Be Too Eager to Buy AMZN Stock Now.

Is Amazon (NASDAQ:AMZN) sensitive to the needs of its customers? That’s a pivotal question that investors ought to consider in 2023. Fortunately, Amazon’s latest foray into a niche healthcare market bodes well for the company. So, despite a number of concerns and headwinds, financial traders will likely fare well with investment in AMZN stock.

The bigger they are, the harder they fall. That was a persistent theme, as FAANG stocks lost significant ground in 2022. This year, however, Amazon’s investors enjoyed the start of a potential comeback in January.

Whether the momentum will persist throughout the year remains to be seen, of course. Still, as Amazon expands far beyond its humble beginnings as an online bookseller, now’s the time for investors to stay long and strong.

AMZN Stock Looks Like a Bargain Now

AMZN stock has run as high as $170.83 during the past 12 months, and the falloff is not necessarily because of the company doing anything wrong. A lot of the technical damage is likely the result of a broad-based selloff of FAANG stock, owing to fears of interest rate hikes.

Those rate hikes won’t continue forever, and inflation already topped out last summer. Furthermore, Amazon shares appear to be bargain-priced as they’re nowhere near their prior peak of $170 and change.

And, here’s a statistic you probably didn’t know: Amazon has a price-to-sales (P/S) ratio of 2.71x, which is certainly reasonable. I prefer to see a P/S ratio below 5x, and under 3x is even better.

Prime Members Can Access Generic Drugs

It seems like everybody and his uncle has an Amazon Prime membership nowadays. In 2023, there’s potentially great news for Prime subscribers. For them, certain generic prescription medicines may be more accessible.

That’s because Amazon is rolling out RxPass, a subscription service that will cost Prime members just $5 per month. With RxPass, subscribers will have “unlimited access” to over 80 “commonly prescribed generic medications,” according to the Wall Street Journal.

The $5 monthly fee includes delivery, so there’s definitely an affordability factor with RxPass. Besides, home delivery of medications can be much more convenient than having to trek to a pharmacy and back.

Don’t be surprised, then, if many customers switch from conventional pharmacies to RxPass in the coming months. This truly could be a win-win scenario for Amazon and its customers, maybe even a lifesaver.

So, Here’s My AMZN Stock Price Prediction for 2023

Introducing RxPass is a brilliant move on Amazon’s part. It’s a great way to build trust while retaining or even expanding Amazon’s customer base.

Meanwhile, AMZN stock isn’t particularly expensive now. The stock tested the $170 level within the past year, but cautious investors can aim for $140. That’s my Amazon price target for 2023 and will represent a decent profit if and when the stock gets there.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.