Josh Brown Sees 20% Upside For Amazon's Stock Price In 2021

Ritholtz Wealth Management CEO Josh Brown said he is starting to get really excited about the setup in Amazon.com Inc. AMZN Tuesday on CNBC's "Fast Money: Halftime Report."

A Technical Analysis: From a technical perspective, consolidation is good because it builds a support level or base for a stock to move higher off of, Brown said, adding "the bigger the base, the bigger the space" once the stock breaks out from its consolidation phase.

Amazon has been building a base since August 2020, he noted. 

Brown told CNBC he is seeing a tightening of Amazon's consolidation range. This typically precedes a breakout either to the upside or the downside, and Brown said he expects Amazon to breakout to the upside after the consolidation resolves. 

Amazon has "one of the best" fundamental stories in addition to its favorable technical setup, he noted. 

Brown told CNBC that he believes Amazon's share price could increase by 20% before the end of 2021.

See Also: Amazon in Talks to Buy MGM

Price Action: Amazon traded as high as $3,554 and as low as $2,330 over a 52-week period.

At last check Tuesday, the stock was up 0.69% at $3,267.33.

(Photo courtesy of Amazon.)