Amazon ad efficiency surges during Prime Day, JMP maintains $285 target

Published 04/08/2025, 19:18
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Investing.com - JMP Securities has reiterated its Market Outperform rating and $285.00 price target on Amazon.com (NASDAQ:AMZN) stock, currently trading at $212.92, following strong advertising performance during the recent Prime Day event. The e-commerce giant, with a market capitalization of $2.27 trillion, maintains a GOOD financial health score according to InvestingPro analysis.

According to a blog post from advertising technology company MNTN, average revenue per advertiser grew 20% year-over-year during Amazon’s Prime Day shopping event.

The blog post also revealed that return on advertising spend (ROAS) increased 10% compared to the previous year, demonstrating improved advertising efficiency on the platform.

JMP analyst Andrew Boone views Amazon’s connected TV (CTV) advertising spending as a positive indicator for third-quarter 2025 guidance ahead of MNTN’s upcoming earnings report.

MNTN, which JMP rates as Market Outperform with a $30 price target, highlighted these advertising efficiency gains in its analysis of the Prime Day performance.

In other recent news, Amazon reported impressive second-quarter earnings, with net sales reaching $167.7 billion, a 13.3% increase from the previous year. This figure surpassed analyst expectations of $162.2 billion. Additionally, Amazon’s operating income rose by 30.6% to $19.2 billion, exceeding the consensus projection of $17.0 billion. HSBC maintained its Buy rating on Amazon, setting a price target of $256.00, while Barclays (LON:BARC) raised its price target to $275.00, citing Amazon’s strong performance and potential in artificial intelligence. UBS also reiterated its Buy rating, maintaining a $271.00 price target despite AWS’s slightly lower-than-expected growth of 17%. In a restructuring move, Amazon announced the closure of its Wondery podcast studio, resulting in 110 job cuts. Wondery CEO Jen Sargent will depart as part of this reorganization. These developments highlight Amazon’s robust financial performance and strategic adjustments.

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