Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Stifel raised its price target on Amazon.com (NASDAQ:AMZN) to $295 from $269 on Friday, while maintaining a Buy rating following the company’s third-quarter results. The new target represents potential upside from Amazon’s current price of $247, with InvestingPro data showing the stock is trading near its 52-week high. Analyst consensus remains strongly bullish with a 1.28 recommendation score (where 1 is Strong Buy).
Amazon’s third-quarter revenue trends exceeded expectations, with Amazon Web Services (AWS) growing 20% on a foreign-exchange neutral basis, marking its highest growth rate since 2022. AWS showed greater quarter-over-quarter acceleration than competitors Microsoft Azure and Google Cloud Platform, reversing the pattern seen in the second quarter. This performance contributes to Amazon’s impressive 10.87% overall revenue growth and 49.61% gross profit margin over the last twelve months.
AWS operating margins surpassed consensus estimates, while backlog growth accelerated on a two-year stack basis, reversing the downward trend observed in the previous two quarters. Amazon’s fourth-quarter revenue guidance came in ahead of expectations at the midpoint, with operating margin guidance approximately in line with consensus.
The e-commerce giant increased its full-year capital expenditure guidance to approximately 6% above consensus estimates. The company continues to face capacity constraints, particularly related to power, and expects capital expenditures to increase next year as it scales its custom silicon (Trainium) and support for AI workloads. InvestingPro analysis indicates Amazon operates with a moderate debt level, with total debt to capital ratio at just 6%, giving the company flexibility for these investments.
Stifel expressed comfort with Amazon’s current elevated spending levels, noting that high-margin segments including AWS and Advertising continue to show healthy growth heading into the holiday season, which is tracking toward a third consecutive year of delivery time reductions. These high-margin businesses contribute to Amazon’s strong 15% return on invested capital and its "GREAT" overall financial health score according to InvestingPro, which offers comprehensive Pro Research Reports on Amazon and 1,400+ other top US stocks with intuitive visuals and expert analysis for smarter investing decisions.
In other recent news, Amazon.com has seen a series of positive developments following its third-quarter 2025 earnings report. The company reported revenue that exceeded consensus estimates by 1%, with notable performances across its North America, International, AWS, and Advertising segments. Analysts have responded favorably, with UBS, Cantor Fitzgerald, Truist Securities, DA Davidson, and TD Cowen all raising their price targets for Amazon. UBS increased its target to $310, citing the 20% year-over-year growth in Amazon Web Services (AWS) as a key factor. Cantor Fitzgerald set a new target of $315, noting that Amazon’s earnings before interest and taxes (EBIT) were 9% higher than expected. Truist Securities raised its target to $290, highlighting AWS as a standout in Amazon’s performance. Both DA Davidson and TD Cowen adjusted their targets to $300, pointing to the reacceleration in AWS growth and overall strong earnings results. These developments reflect a broad-based beat and raise for Amazon, with analysts maintaining positive ratings on the company’s stock.
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