JMP maintains Amazon stock Market Outperform, $285 target

On Monday, JMP Securities reaffirmed their optimistic stance on Amazon.com (NASDAQ:AMZN) shares, maintaining a Market Outperform rating and a price target of $285. The research firm’s analyst, Nicholas Jones, highlighted Amazon’s new strategic initiative to include non-Amazon listed products in search results. This move, coupled with the ’Buy for Me’ feature, indicates Amazon’s aim to capture a larger share of search-related revenue. According to InvestingPro data, Amazon’s stock is currently trading at $171, with analyst targets ranging from $203 to $306, suggesting significant upside potential. Recent market data shows the stock has declined 10% in the past week, potentially presenting an opportunity for investors.

The analyst noted that the inclusion of external products in Amazon’s search results represents a significant development for the company. By allowing customers to find and purchase items not directly listed on Amazon’s platform, the e-commerce giant is expanding its reach and potentially increasing its influence in the online retail space. With a market capitalization of $1.81 trillion and revenue growth of 11% over the last twelve months, Amazon continues to demonstrate its dominance in the retail sector. InvestingPro analysis indicates the company maintains a Good financial health score, supported by strong cash flows and moderate debt levels.

The ’Buy for Me’ function further enhances this strategy by simplifying the purchasing process for customers. However, Jones pointed out that it remains unclear how Amazon will share data with third-party merchants, aside from providing shipping addresses.

Amazon’s move to integrate non-listed products into its ecosystem is seen as a step to broaden its market scope. This decision could have implications for the company’s future growth and its ability to compete with other major players in the online advertising and search sectors.

JMP Securities’ reaffirmed rating and price target reflect confidence in Amazon’s ability to execute its strategic initiatives effectively. The $285 price target suggests that the firm sees a substantial upside to the current trading price of Amazon stock on the NASDAQ.

Investors and market observers will be watching closely to see how Amazon’s latest strategy impacts its performance and whether it will indeed contribute to increased search revenue as anticipated by JMP Securities.

In other recent news, Amazon’s Project Kuiper is set to launch its first full-scale batch of broadband satellites, marking a significant step in its mission to provide global internet coverage. This launch, scheduled for April 9, will deploy 27 satellites using a United Launch Alliance Atlas (NYSE:ATCO) V rocket from Cape Canaveral Space Force Station. In financial developments, TD Cowen adjusted its price target for Amazon to $240, maintaining a Buy rating despite concerns over macroeconomic conditions and the impact of tariffs. The firm projects Amazon’s first-quarter 2025 revenue growth at 8.2% year-over-year, driven by Amazon Web Services and advertising revenues.

Goldman Sachs also maintained its Buy rating for Amazon, setting a price target of $255. The firm noted the potential financial impact of new tariffs on Amazon’s first-party eCommerce business but highlighted the company’s strategies to mitigate these effects. Additionally, Amazon experienced a significant market value decrease, with shares falling 9%, bringing its market capitalization below $2 trillion. These recent developments reflect ongoing challenges and strategic initiatives within Amazon.

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