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Investing.com - Benchmark has reiterated its Buy rating on Amazon.com (NASDAQ:AMZN) stock with a price target of $260.00, aligning with the broader Wall Street consensus. According to InvestingPro data, Amazon maintains a strong analyst consensus rating of 1.28, with price targets ranging from $230 to $306.
The firm maintained its positive outlook despite noting Amazon has faced challenges in the second half of the year, with shares only recently turning positive for 2025 following a 2.5% gain. The stock, currently trading at $218.67, has delivered a 12.3% return over the past year and boasts a robust revenue growth of 10.87%. Prior to this recent movement, the stock had been testing near-term lows established after disappointing AWS margin results in the second quarter.
Benchmark observed that profit expectations for Amazon dropped significantly for both 2025 and 2026, despite continued positive momentum in network and fulfillment costs. The company’s announcement of plans to replace 600,000 workers with robots by 2033 highlighted this ongoing operational shift.
The research firm expressed confidence in the eventual contribution from Amazon’s advertising and Prime Video ecosystem, which it believes should produce strong margins at scale. Benchmark acknowledged that Amazon can be difficult to own during investment periods like the current one, which includes data center buildouts and satellite launches pushing free cash flow into negative territory.
Benchmark anticipates AWS growth will reaccelerate and operating income margins will resume an upward trajectory, while noting a major AI contract, though not currently anticipated, would further strengthen Amazon’s position. InvestingPro analysis reveals Amazon maintains a GOOD financial health score, with 11+ additional exclusive insights available to subscribers, including detailed valuation metrics and growth projections.
In other recent news, Amazon.com Inc. experienced a significant disruption in its Amazon Web Services (AWS) infrastructure, affecting multiple platforms. The company confirmed increased error rates and latencies in the US-EAST-1 region. Separately, Amancio Ortega’s Pontegadea Inversiones acquired a UK warehouse rented by Amazon for £81 million, highlighting real estate investments related to Amazon’s operations. On the financial front, Citizens has maintained its Market Outperform rating for Amazon, with a price target of $285, citing steady global monthly active user growth of 5.2% in September. BMO Capital also reiterated its Outperform rating and $280 price target, noting potential growth in AWS despite competition and capacity constraints. Telsey Advisory Group continues to rate Amazon as Outperform with a $265 target, following a successful Prime Big Deal Days event that capitalized on partnerships with well-known brands. These developments reflect ongoing interest and activity surrounding Amazon’s diverse business segments.
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