TSX drops after Canadian index edges higher in prior session
Investing.com - TD Cowen raised its price target on Amazon.com (NASDAQ:AMZN) to $300 from $255 while maintaining a Buy rating following the company’s third-quarter earnings report. The new target aligns with the broader analyst sentiment, as the $2.65 trillion market cap company has a consensus "Strong Buy" recommendation and an analyst high target of $306, according to InvestingPro data.
Amazon reported third-quarter 2025 revenue that exceeded consensus estimates by 1%, with outperformance across North America, International, AWS, and Advertising segments by approximately 1-2%. This continues the company’s strong revenue trajectory, which has grown 10.87% over the last twelve months to $670.04 billion.
AWS revenue grew 20.2% year-over-year, showing acceleration as its backlog expanded to $200 billion, with Trainium now representing a multi-billion dollar business within Amazon’s portfolio. The advertising segment also accelerated, posting 23.5% year-over-year growth.
Operating income beat consensus by 10.1%, excluding FTC and severance charges, while Amazon’s fourth-quarter 2025 guidance exceeded expectations with revenue and operating income projections 2.2% and 9.4% above consensus at the high end of the range.
Amazon shares rose 13% in after-hours trading following the earnings announcement and guidance.
In other recent news, Amazon’s third-quarter results have prompted several analyst firms to raise their price targets for the company. Piper Sandler increased its price target to $300, highlighting better-than-expected results and maintaining an Overweight rating. KeyBanc also adjusted its price target to $303, emphasizing the acceleration of Amazon Web Services (AWS) growth to 20% year-over-year. Oppenheimer raised its target to $290, noting AWS’s momentum and its significant capacity expansion plans. Raymond James set a new target of $275, citing AWS’s ability to exceed growth expectations. Lastly, Morgan Stanley increased its price target to $315, acknowledging Amazon’s strong third-quarter performance and improved future guidance. These developments underline the positive sentiment among analysts regarding Amazon’s growth trajectory, particularly in its AWS division.
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