Amazon stock price target raised to $271 by UBS on lower tariff concerns

Published 28/07/2025, 07:52
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Investing.com - UBS has raised its price target on Amazon.com (NASDAQ:AMZN) to $271.00 from $249.00 while maintaining a Buy rating on the stock.

The price target increase reflects UBS’s decision to unwind some previous estimate decreases from three months ago, when the firm had anticipated greater tariff-driven demand destruction. UBS has raised its Gross Merchandise Value (GMV) estimates for 2026 by approximately 2%, with a corresponding 2% increase in gross profit projections.

UBS also increased its 2027 GMV and gross profit estimates by about 2%. Based on better-than-expected advertising performance, the firm raised its 2026 and 2027 Advertising segment forecasts by approximately 3%, while maintaining AWS growth estimates at 16% for the second quarter of 2025.

The revised outlook results in a 1% increase in 2026 revenue estimates and a 5% increase in EBIT (Earnings Before Interest and Taxes) projections. For 2027, UBS forecasts a 0.1% revenue increase and a 7% EBIT increase.

Following Amazon’s first quarter 2025 capital expenditure disclosure, UBS has also raised its 2025 CapEx forecast to $112 billion from the previous estimate of $107 billion.

In other recent news, Google (NASDAQ:GOOGL) has secured a significant cloud-computing deal with ServiceNow (NYSE:NOW) worth $1.2 billion over five years, as reported by Bloomberg. This agreement is a notable achievement for Google Cloud as it strives to compete with larger rivals like Amazon Web Services and Microsoft (NASDAQ:MSFT) Azure in the enterprise market. Meanwhile, Amazon is closing its artificial intelligence laboratory in Shanghai amid rising tensions between the United States and China, according to the Financial Times. This decision aligns with increased scrutiny from Washington on American companies operating in China. In another development, Amazon founder Jeff Bezos is reportedly considering acquiring CNBC, following its planned spinoff from NBCUniversal parent Comcast (NASDAQ:CMCSA), as reported by The New York Post. Additionally, President Donald Trump recently met with Jeff Bezos at the White House for over an hour, though details of their discussion remain undisclosed. On the financial front, Deutsche Bank (ETR:DBKGn) has raised its price target for Amazon to $266, maintaining a Buy rating, citing strong growth prospects and a resilient consumer backdrop.

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