TSX runs higher on rate cut expectations
Investing.com - TD Cowen has raised its price target on Amazon.com (NASDAQ:AMZN) to $250.00 from $240.00 while maintaining a Buy rating on the stock. The e-commerce giant, currently trading at $221.06 with a $2.35 trillion market cap, has demonstrated robust financial health according to InvestingPro metrics.
The firm expects Amazon to beat consensus estimates for second-quarter 2025 results, with revenue and operating income forecasts approximately 1% and 10% above consensus, respectively. With the company’s strong 10% year-over-year revenue growth and healthy profit margins, InvestingPro analysis suggests the stock is currently trading near its Fair Value.
TD Cowen attributes the anticipated outperformance to continued growth across Amazon Web Services (AWS), advertising, and e-commerce segments.
The research firm also projects a solid third-quarter 2025 guidance, with estimates 1.1% and 6% above consensus, driven by re-accelerating AWS growth alongside continued momentum in e-commerce and advertising.
TD Cowen slightly raised its long-term revenue and operating income estimates for Amazon, supporting the price target increase to $250 per share.
In other recent news, Amazon is under investigation by the Competition Bureau for its pricing policy on the Canadian marketplace, Amazon.ca. The investigation seeks to determine if Amazon’s Marketplace Fair Pricing Policy is potentially abusing its dominance by penalizing sellers for setting higher prices on the platform compared to other venues. Meanwhile, Truist Securities has raised its price target for Amazon to $250, citing a strong second-quarter outlook driven by a resilient North American consumer and favorable foreign exchange conditions. Jefferies also increased its price target to $255, noting shopper resilience and continued customer loyalty, particularly through Amazon Prime memberships.
Bernstein has raised its price target to $235, highlighting growth in Amazon Web Services (AWS) despite supply constraints on critical components. The firm notes that AWS’s AI contributions are growing rapidly, and supply issues are expected to ease over time. Citizens JMP maintained a price target of $250, with a Market Outperform rating, based on a study showing mixed vendor perspectives on Amazon’s growth and margins. These developments provide a mixed but generally optimistic outlook for Amazon, with analyst firms highlighting both opportunities and challenges for the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.