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Investing.com - Citi has raised its price target on Amazon.com (NASDAQ:AMZN) stock to $265.00 from $225.00 while maintaining a Buy rating ahead of the company’s second-quarter earnings report. According to InvestingPro data, Amazon currently trades at $229.30, with analysts maintaining a Strong Buy consensus and targets ranging from $195 to $305.
The e-commerce and cloud computing giant, with a market capitalization of $2.43 trillion and impressive revenue growth of 10.08% over the last twelve months, is scheduled to release its Q2 2025 financial results on Thursday, July 31, after market close, with Citi expecting results to exceed consensus expectations for both revenue and operating income.
Amazon Web Services (AWS) revenue growth remains the key focus area for investors, with Citi monitoring progress on AWS infrastructure build-out in the first half of 2025, which should lead to accelerating growth in the second half of the year.
Citi noted that retail trends improved throughout the quarter, which positions Amazon well for the Back-to-School season as advertising demand grows and operational efficiencies improve through AI and fulfillment center robotics.
Amazon remains one of Citi’s top picks across the Internet sector, with the firm citing retail performance, rising AWS demand, and margin expansion as key factors supporting its bullish outlook.
In other recent news, Amazon.com has made significant strides in its cloud computing and quantum processing capabilities. The company expanded its Amazon Braket platform by adding IQM’s 54-qubit superconducting quantum processing unit, known as Emerald, to its offerings. This development provides customers with enhanced options for quantum computing, particularly in the Europe (Stockholm) Region. Additionally, Amazon has implemented job cuts within its Amazon Web Services (AWS) division as part of ongoing adjustments in its cloud computing business, which remains a key profit driver.
Analyst firms have shown confidence in Amazon’s growth potential. Cantor Fitzgerald raised its price target for Amazon to $260, citing expected growth in AWS and an optimistic outlook for future quarters. Meanwhile, JMP Securities maintained its $285 price target, focusing on the high-margin potential of AWS and advertising growth, despite slower-than-expected Prime Day sales. The firm suggests that Amazon’s logistics improvements and automation efforts could lead to further efficiencies.
In other corporate developments, Amazon is facing scrutiny from lawmakers regarding its involvement with submarine communications cables serviced by Chinese and Russian entities. This inquiry, led by U.S. lawmakers, raises concerns about potential security risks associated with these critical communications infrastructures. These recent developments highlight Amazon’s multifaceted business operations and the challenges and opportunities it faces in the tech industry.
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