Citizens JMP reiterates Market Outperform rating on Amazon stock

Published 01/08/2025, 11:12
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Investing.com - Citizens JMP analyst Andrew Boone reiterated a Market Outperform rating and $285.00 price target on Amazon.com (NASDAQ:AMZN) following the company’s recent quarterly results. According to InvestingPro data, Amazon currently trades near its Fair Value, with a strong Financial Health Score of 4.1 out of 5.

Amazon reported second-quarter 2025 revenue that exceeded consensus estimates by $5.5 billion, or 3%, while its third-quarter 2025 revenue guidance midpoint came in 2% above consensus expectations.

The company’s revenue excluding foreign exchange effects accelerated to 12% year-over-year growth, up 2 percentage points from the first quarter of 2025, with AWS maintaining 17% year-over-year growth and advertising growth accelerating to 22% year-over-year.

Operating income surpassed the high end of guidance by 10%, with the company noting that profit margins in Amazon’s mature international markets are now in line with those in North America.

Citizens JMP maintained its positive outlook on Amazon, stating the company "remains well positioned across eCommerce, Cloud, and advertising," despite acknowledging that heightened expectations ahead of earnings may have already been factored into the share price.

In other recent news, Meta Platforms (NASDAQ:META) reported strong second-quarter earnings, with revenue growth accelerating by 22% year-over-year, according to JPMorgan. The results were bolstered by AI-driven engagement and advertising improvements. Stifel noted that Meta’s revenue exceeded the company’s guidance range, and the firm provided third-quarter revenue guidance that surpassed consensus estimates. As a result of these strong financial performances, Benchmark, JPMorgan, and Stifel all raised their price targets for Meta Platforms, with the new targets set at $890, $875, and $900, respectively. Additionally, Meta is exploring partnerships with AI startups Pika and Higgsfield to enhance its video creation and editing capabilities. Discussions with Pika include potential acquisition or licensing agreements for its technology. Moreover, Meta’s increased capital expenditure forecasts have contributed to a positive outlook for AI infrastructure companies like CoreWeave. These developments reflect Meta’s ongoing strategic initiatives and financial performance.

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