Crispr Therapeutics shares tumble after significant earnings miss
On Thursday, JMP Securities analyst Nicholas Jones upheld a Market Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) with a steadfast $285.00 price target. With a market capitalization of $2.13 trillion and impressive revenue growth of 11% over the last twelve months, Amazon continues to demonstrate its market dominance. Jones highlighted Amazon’s extension into retail media advertising as a logical progression, given the company’s extensive history in marketing its products and services to other retailers. The analyst anticipates that Amazon’s retail media offering will likely draw new advertisers and bolster the share of retail media ad spending in advertising budgets. InvestingPro analysis reveals the company maintains a strong financial health score, with 12 key investment tips available for subscribers.
Amazon’s foray into providing a retail media advertising solution is seen as a move to attract additional advertising budgets as e-commerce retailers make more inventory available to advertisers. With EBITDA of $120.47 billion, the company has substantial resources to invest in such initiatives. This development is expected to increase Amazon Ads’ appeal by offering advertisers expanded reach through a broader selection and new opportunities. Although Amazon already commands a significant portion of retail media ad spend in the United States, the impact of this new offering is expected to be modest, especially in the near term while the platform is still in beta.
Jones noted that while advertisers with retail media budgets might seek diversity beyond Amazon’s platform, many existing Amazon advertisers could be interested in incremental ad inventory through a unified platform. Despite anticipating a relatively limited impact on Amazon’s financials, Jones expressed optimism about Amazon’s continuous efforts to add value for its advertising customers. This includes the recent introduction of ad-based Prime Video content.
The analyst’s valuation of Amazon stock is based on a 17x EV/2026E EBITDA multiple. Jones’ remarks underscore Amazon’s strategy to leverage its unparalleled consumer data set, potentially expanding its monetization efforts beyond its ecosystem and into the broader open internet. The reiteration of the Market Outperform rating and the $285 price target reflect confidence in Amazon’s advertising initiatives and their contribution to the company’s growth.
In other recent news, Amazon has initiated the sale of carbon credits to its suppliers and business customers, marking its first venture into this market. The company aims to help offset carbon emissions, following industry-leading standards and encouraging investments in nature. Meanwhile, JMP Securities has maintained a Market Outperform rating for Amazon stock, setting a price target of $285. The analyst speculates on Amazon’s potential entry into the used car market, though it is noted that this development is still in its early stages.
Nvidia (NASDAQ:NVDA) has been highlighted in discussions about the rapid pace of chip development, with a former AWS leader noting the shortening lifespan of chips like Nvidia’s H100 and H200. This rapid evolution underscores Nvidia’s strong market position, controlling 90% of the market due to its integrated hardware and software approach. Additionally, Tesla (NASDAQ:TSLA) has seen significant interest from retail investors, who have been net buyers for 13 consecutive sessions, injecting $8 billion into the stock. This comes despite recent challenges, such as the impact of new auto import tariffs imposed by the U.S. government.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.