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Investing.com - JMP Securities has reiterated its Market Outperform rating and $285 price target on Amazon.com (NASDAQ:AMZN), despite acknowledging slower-than-expected Prime Day growth. The e-commerce giant, which boasts a market capitalization of $2.38 trillion, maintains a "GREAT" financial health score according to InvestingPro analysis.
The firm emphasized it remains primarily focused on Amazon Web Services (AWS) and advertising growth due to their higher margin profiles, rather than the Prime Day performance.
JMP believes Amazon’s logistics improvements are still in early stages as robotics continues to automate more warehouse processes, suggesting further efficiency gains ahead.
The $285 price target represents approximately 16 times JMP’s estimated 2026 EBITDA of $191 billion (25.0% margin) and 39 times estimated 2026 GAAP earnings per share of $7.34.
Amazon last closed at $223.88, trading at 12.4 times JMP’s 2026 estimated EBITDA and 30.5 times estimated 2026 GAAP earnings per share, with the firm justifying its premium valuation based on Amazon’s "significant moat across logistics" that enables advertising growth and AWS scale.
In other recent news, Amazon has made significant workforce adjustments within its Amazon Web Services (AWS) cloud computing division, although specific details on the number of employees affected have not been disclosed. Cantor Fitzgerald has raised its price target for Amazon to $260, citing anticipated growth in AWS and stable pricing on the platform. The firm expects Amazon’s second-quarter 2025 revenues to be near the midpoint of guidance, with operating income projected to exceed forecasts. Additionally, BofA Securities has maintained its Buy rating on Amazon, highlighting a 60% year-over-year increase in Gross Merchandise Value during Prime Day, which was extended to four days this year. Former Amazon executive Tom Taylor has been appointed to lead the Bezos Earth Fund, succeeding Andrew Steer as CEO. In labor-related developments, the British Columbia Labour Relations Board ruled that Amazon interfered with unionization efforts at a warehouse near Vancouver, leading to remedial certification of the union. The board criticized Amazon for its anti-union campaign, which it described as coercive and intimidating. Amazon has defended its actions, stating it was merely providing factual information to employees.
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