Analyst John Blackledge of TD Cowen reiterated a Buy rating on Amazon, retaining the price target of $255.00.
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John Blackledge has given his Buy rating due to a combination of factors including anticipated revenue growth in Amazon’s key business segments such as AWS, advertising, and eCommerce. He expects Amazon’s third-quarter results to surpass consensus estimates, driven by continued expansion in these areas. Furthermore, Blackledge forecasts a strong fourth-quarter guidance, with AWS growth accelerating and advertising maintaining its robust performance.
Blackledge also highlights that AWS, despite lagging behind its cloud peers, is poised for revenue growth acceleration in the latter half of 2025 and beyond, fueled by increasing demand for GenAI workloads. This anticipated growth is supported by Amazon’s significant investments in AI infrastructure, which are expected to alleviate supply constraints. Additionally, the contribution from partnerships like Anthropic is projected to enhance AWS’s year-over-year growth, further reinforcing his positive outlook on Amazon’s stock.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $275.00 price target.