106%+ returns, 97% win rate: A fresh list of AI-picked stock is out NOW
Investing.com - Wedbush raised its price target on Amazon.com (NASDAQ:AMZN) stock to $250.00 from $235.00 on Wednesday, while maintaining an Outperform rating ahead of the e-commerce giant’s second-quarter earnings report. According to InvestingPro data, Amazon currently trades at $231.01, with analysts’ targets ranging from $195 to $305, suggesting potential upside. The company appears slightly undervalued based on InvestingPro’s proprietary Fair Value model.
The research firm cited several positive factors supporting its outlook, including encouraging U.S. retail data, healthy advertiser sentiment, strong AWS demand, and continued efficiency gains across Amazon’s business operations that could drive margin expectations higher. This optimism is reflected in InvestingPro data, which shows Amazon maintaining robust revenue growth of 10.08% and earning a "GREAT" financial health score of 3.12.
Amazon is scheduled to report its second-quarter results on Thursday, July 31, after market close, with Wedbush noting that investor sentiment has improved in recent weeks following what it described as a disappointing second-quarter guidance provided in early May.
Wedbush raised its second-quarter operating income estimate to $17.0 billion (10.5% margin) from $16.6 billion (10.2% margin), approximately 1% above the Street consensus, while its full-year operating income forecast now stands at $81.3 billion (11.7% margin), about 4% above consensus.
Despite investor concerns about tariff and macroeconomic uncertainty, currency risk, rising expenses for AI initiatives, and costs associated with Project Kuiper, Wedbush believes the risk/reward ratio for Amazon remains attractive with opportunities to exceed current operating income expectations. Nine analysts have recently revised their earnings estimates upward, as revealed by InvestingPro’s comprehensive analysis. For deeper insights into Amazon’s valuation and growth prospects, subscribers can access the detailed Pro Research Report, available exclusively on InvestingPro.
In other recent news, Amazon has seen significant developments. Stifel has raised its price target for Amazon to $262, citing stronger-than-expected performance in the second quarter of 2025. UBS also increased its price target for Amazon to $271, reflecting reduced concerns over tariffs and an improved outlook for the company’s gross merchandise value and gross profits in 2026. On the business front, Amazon founder Jeff Bezos is reportedly considering acquiring CNBC, a cable network, following its planned spinoff from Comcast (NASDAQ:CMCSA). Additionally, Amazon has decided to close its artificial intelligence lab in Shanghai amid escalating tensions between the United States and China. These moves come as the company navigates complex geopolitical landscapes and explores new strategic opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.