BofA update shows where active managers are putting money
Investing.com - Truist Securities has raised its price target on Amazon.com (NASDAQ:AMZN) to $250.00 from $226.00 while maintaining a Buy rating on the stock. According to InvestingPro data, Amazon, currently valued at $2.34 trillion, receives a strong "Buy" consensus from analysts with targets ranging from $195 to $305.
The price target increase comes as Truist anticipates Amazon will report stronger than expected second-quarter 2025 results. The firm attributes this outlook to a resilient North American consumer that remains largely unaffected by macroeconomic conditions and tariffs. InvestingPro analysis shows Amazon maintaining robust financial health with an overall score of "GREAT" and impressive revenue growth of 10.08% over the last twelve months.
Truist notes that slightly higher order frequency and average selling prices have helped drive growth for the e-commerce giant. A weakening U.S. dollar has also created favorable foreign exchange conditions for the company.
The research firm has raised its estimates for Amazon’s revenue and operating income for Q2 2025 above consensus levels. Truist believes that if Amazon sustains second-quarter trends into the third quarter, it could guide slightly above current consensus expectations.
Truist Securities views Amazon as a market share gainer and long-term winner across multiple sectors including e-commerce, advertising, cloud computing, and logistics.
In other recent news, Amazon’s financial and strategic developments have captured the attention of investors. Bernstein has raised its price target for Amazon to $235, citing growth in Amazon Web Services (AWS) and easing supply constraints, which are expected to improve throughout the year. Jefferies also increased its price target for Amazon to $255, highlighting the resilience of Amazon shoppers and the competitive advantages of Amazon Prime. In another development, AWS has expanded its collaboration with Veeva Systems (NYSE:VEEV) to enhance cloud infrastructure for life sciences applications, further strengthening its position in this sector.
Amazon is also making strides in artificial intelligence, despite the recent departure of Vasi Philomin, a key executive overseeing its generative AI efforts. The company has been actively investing in AI technologies, including a significant $8 billion investment in AI startup Anthropic. Additionally, Amazon’s Ring has introduced a new AI feature called Smart Video Search, allowing users to find specific moments in their video history using text queries. This feature is set to launch officially in November 2024 as part of a revamped subscription service. These recent developments reflect Amazon’s ongoing efforts to innovate and adapt in various market segments.
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