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Investing.com - Freedom Broker has raised its price target on Amazon.com (NASDAQ:AMZN) to $255.00 from $240.00 while maintaining a Hold rating following the company’s Q2 FY2025 financial results. According to InvestingPro data, 20 analysts have recently revised their earnings estimates upward, with the overall analyst consensus indicating a Strong Buy rating. The stock currently trades at $221.75, with InvestingPro’s Fair Value analysis suggesting slight undervaluation.
The e-commerce and cloud computing giant, now commanding a market capitalization of $2.36 trillion, delivered strong financial results for the second quarter, exceeding both market expectations and its own guidance across all segments, with retail efficiency gains highlighted as particularly notable. Revenue growth reached 10.87% over the last twelve months, demonstrating Amazon’s continued market dominance.
Amazon Web Services (AWS) showed mixed performance, with revenue slightly above expectations but profitability under pressure, raising investor concerns especially when compared to stronger cloud results from competitors.
The company’s third-quarter guidance came in well above revenue expectations but below profit forecasts, which Freedom Broker interprets as prudent management positioning given heightened geopolitical uncertainty.
Freedom Broker has revised its financial forecasts upward for Amazon, citing confidence in the company’s ability to mitigate geopolitical risks and monetize continued logistics improvements.
In other recent news, Amazon Web Services has agreed to provide U.S. government agencies with up to $1 billion in cloud discounts through the end of 2028. This agreement aims to accelerate IT transformation and spur AI innovation across government sectors. Additionally, Amazon Web Services announced the general availability of Amazon Elastic (NYSE:ESTC) VMware Service, which allows customers to run VMware workloads on AWS without needing to re-platform applications. This service facilitates cloud migration by enabling organizations to use their existing VMware Cloud Foundation licenses.
In the realm of partnerships, OpenAI’s new models will be available on Amazon Web Services, as highlighted by BofA Securities, which has reiterated its Buy rating and $272.00 price target for Amazon. Furthermore, JMP Securities has reiterated its Market Outperform rating and a $285.00 price target on Amazon stock, citing improved advertising efficiency during the Prime Day event. Advertising metrics showed a 20% year-over-year increase in average revenue per advertiser. These developments reflect Amazon’s ongoing efforts to enhance its service offerings and maintain investor confidence.
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