Amazon advertising efficiency rises during Prime Day, JMP reiterates rating

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, citing recent advertising performance metrics. The rating aligns with the broader Wall Street sentiment, as InvestingPro data shows 18 analysts recently revised their earnings estimates upward, with a strong consensus buy recommendation.

The firm highlighted a blog post from MNTN that showed significant advertising efficiency gains during Amazon’s Prime Day event. According to the data, average revenue per advertiser grew 20% year-over-year during the shopping event.

Return on advertising spend (ROAS) also showed improvement, increasing 10% compared to the previous year’s Prime Day period.

JMP views Amazon’s connected TV (CTV) advertising spending as a positive indicator for third-quarter 2025 guidance as MNTN approaches its earnings report.

The firm maintained its existing Market Outperform rating on Amazon shares, keeping its price target unchanged at $285.00.

In other recent news, Amazon reported impressive second-quarter financial results, with net sales reaching $167.7 billion, marking a 13.3% year-over-year increase and surpassing analyst expectations of $162.2 billion. Operating income also rose significantly by 30.6% to $19.2 billion, exceeding consensus estimates of $17.0 billion. Following these strong earnings, HSBC reiterated its Buy rating on Amazon stock with a $256.00 price target. Additionally, JMP Securities maintained its Market Outperform rating and a $285.00 price target after observing a 20% year-over-year growth in average revenue per advertiser during Amazon’s Prime Day event.

On another note, UBS maintained its Buy rating and $271.00 price target, despite Amazon Web Services (AWS) posting a slightly lower-than-expected growth of 17% year-over-year. UBS analyst Stephen Ju highlighted that the market’s reaction was extreme, given the minimal revenue shortfall against expectations. Furthermore, Amazon announced the closure of its Wondery podcast studio, leading to approximately 110 job cuts as part of a reorganization effort. Wondery CEO Jen Sargent will be leaving the company amid these changes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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