Intel stock extends gains after report of possible U.S. government stake
On Monday, Mizuho (NYSE:MFG) Securities reiterated its Outperform rating on Amazon.com stock (NASDAQ:AMZN), maintaining a price target of $285.00. Currently trading at $229.15, Amazon has shown strong momentum with a 37% gain over the past six months. According to InvestingPro analysis, the stock’s current price is near its Fair Value, with analyst targets ranging from $207 to $306. The firm’s analysis acknowledges a complex quarter for the e-commerce giant, marked by subdued guidance and a notable increase in capital expenditures. However, Amazon’s profit margins exceeded market expectations, with a gross profit margin of 48.85%, and its cloud computing division, AWS, outperformed its competitors. InvestingPro data reveals Amazon maintains a strong financial health score of 3.02 out of 5, labeled as "GREAT," with particularly high scores in growth and profitability metrics.
According to Mizuho, Amazon is aggressively investing in capital expenditures, which are projected to reach approximately $110 billion for the fiscal year 2025, a 25% increase over consensus estimates. This decision is driven by strong demand signals and an anticipation of eased supply constraints in the second half of 2025. The company’s robust revenue growth of 11% in the last twelve months and strong cash flows support this aggressive investment strategy.
The firm also highlighted Amazon’s strategic shift towards custom ASICs and advancements in model training, which could significantly reduce computing costs and foster the adoption of artificial intelligence technologies. In the retail segment, Mizuho sees potential for increased efficiency through the redesign of Amazon’s inbound logistics network, expansion of local delivery centers, and implementation of robotic automation.
Despite a slower start to the year 2025, Mizuho stands by its view that Amazon’s fundamental growth narrative remains intact. The firm maintains its forecast for Amazon’s FY26 EBITDA at $185 billion and supports the $285 price target, which is based on a 16 times multiple of its FY26 EBITDA projections. For deeper insights into Amazon’s valuation and growth prospects, including 14 additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Amazon has seen a flurry of activity from analyst firms. Phillip Securities downgraded Amazon’s rating from Buy to Accumulate, despite raising its stock target from $240 to $270, following the company’s Q4 2024 performance. The firm noted Amazon Web Services’ year-over-year growth of 19% as a significant revenue contributor.
In a parallel development, Amazon MGM Studios is planning to establish an international theatrical distribution arm for its future feature films, a move that will allow direct control over international distribution.
UBS analyst Stephen Ju adjusted the price target for Amazon stock, bringing it down slightly from $275.00 to $272.00, while maintaining a Buy rating. Ju noted that current estimates have not yet accounted for the return on invested capital anticipated from the incremental investments in Amazon Web Services and other areas.
Nokia (HE:NOKIA) secured an injunction against Amazon in a German court over a streaming patent infringement, compelling Amazon to cease its streaming service operations within the country, pending a required deposit from Nokia.
Lastly, Truist Securities reduced its price target for Amazon shares to $265 from the previous $270, while maintaining a Buy rating. The firm cited increased capital expenditures and the impact of foreign exchange headwinds as potential challenges for 2025. Despite these developments, Truist maintains a bullish outlook for Amazon’s long-term prospects.
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