Cantor Fitzgerald raises Amazon stock price target to $260 on AWS growth

Published 16/07/2025, 13:02
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Investing.com - Cantor Fitzgerald raised its price target on Amazon.com (NASDAQ:AMZN) to $260 from $240 while maintaining an Overweight rating on Wednesday. The e-commerce giant, currently trading at $226.35 with a market capitalization of $2.4 trillion, appears slightly undervalued according to InvestingPro analysis.

The firm expects Amazon to report second-quarter 2025 results with revenues near the midpoint of guidance, while operating income should exceed the company’s previous forecast. With trailing twelve-month revenue of $650.31B and EBITDA of $126.14B, Amazon continues to demonstrate robust financial performance. U.S. non-store retail sales increased 7% year-over-year in the second quarter, slightly accelerating from the first quarter, suggesting favorable trends for Amazon’s North America retail growth. For deeper insights into Amazon’s financials and growth metrics, check out the comprehensive Pro Research Report available on InvestingPro.

Amazon Web Services (AWS) growth is projected to reach approximately 17% year-over-year in the second quarter of 2025. The key focus for investors will be on Amazon’s third-quarter 2025 outlook, with Cantor Fitzgerald anticipating revenue guidance around $175 billion and operating income near $19 billion at the high end.

Despite lingering trade uncertainties, Cantor Fitzgerald noted that Amazon’s CEO recently indicated prices on the platform have remained relatively stable, which suggests a positive outlook for third-quarter operating income guidance. The firm also believes Amazon has significant room to improve efficiency across its logistics network.

Cantor Fitzgerald increased its fiscal year 2026 operating income estimates by 9%, with the new $260 price target based on 30 times fiscal year 2026 estimated operating income. With Amazon’s next earnings report scheduled for July 31, 2025, and a strong analyst consensus rating of 1.36, investors are watching closely. The firm highlighted that Amazon shares have underperformed the broader Magnificent Seven stocks (excluding Tesla (NASDAQ:TSLA)) year-to-date.

In other recent news, Amazon.com reported significant performance during its Prime Day event, generating approximately $21.4 billion in Gross Merchandise Value, a 60% increase year-over-year. BofA Securities maintained a Buy rating on Amazon, attributing part of the success to the extended four-day event, which increased Amazon’s share of quarterly GMV. Meanwhile, Piper Sandler raised Amazon’s stock price target from $212 to $250, citing stronger AWS estimates and improved gross margin projections due to advancements in robotics and service mix changes. Morgan Stanley (NYSE:MS) also increased its price target for Amazon to $300, highlighting a more favorable tariff environment and increased confidence in AWS growth. Additionally, the British Columbia Labour Relations Board ruled that Amazon interfered with unionization efforts at a facility near Vancouver, leading to remedial certification for the union. Amazon responded by stating it was merely providing facts to employees. In leadership changes, former Amazon executive Tom Taylor was appointed to lead the Bezos Earth Fund, succeeding Andrew Steer. These developments reflect the company’s ongoing strategic adjustments and challenges in various areas.

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