Analyst Laura Martin of Needham maintained a Buy rating on Amazon, retaining the price target of $265.00.
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Laura Martin’s rating is based on the significant growth potential of Amazon’s advertising business, which she views as a crucial driver of the company’s future value. Despite being a smaller portion of Amazon’s overall sales, the advertising segment has demonstrated impressive growth, outpacing the company’s total sales growth by a significant margin. This positions Amazon’s ad business as a key factor in its financial performance in the coming years.
Furthermore, Martin highlights that Amazon has developed the third-largest advertising business globally, trailing only behind established giants like Meta and Google. This achievement underscores Amazon’s competitive advantages and its ability to leverage its vast ecosystem to drive advertising revenue. As a result, she believes that the advertising segment will continue to be a major contributor to Amazon’s financial success, justifying her Buy rating.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $253.00 price target.