Top Goldman Sachs analyst Eric Sheridan raised his price target for Amazon (AMZN) to $275 from $240 and reiterated a Buy rating, calling the e-commerce and cloud computing giant a “preferred name” among his large-cap coverage. In fact, he views Amazon as a “leader across most secular growth themes” in his broader internet coverage, which includes e-commerce, digital advertising, media consumption, aggregated subscription offerings, and cloud computing.
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Top Goldman Sachs Analyst Is Bullish on AMZN Stock
Sheridan stated that ahead of the Q3 earnings season, the main investor debate centers on the Amazon Web Services (AWS) cloud business and the compounding tailwinds in the company’s advertising segment. Based on his analysis, the 5-star analyst sees a pathway for AWS to achieve more than 20% top-line growth and sustain low-to-mid-30% GAAP earnings before interest and taxes (EBIT) margins in the second half of 2025 and 2026.
The analyst stated that his estimates are based on the current competitive backdrop, Amazon’s existing revenue backlog, and the contribution effect of AI services (including Anthropic’s contribution). Sheridan also considered easing capacity constraints and the return profile of capex investments.
Sheridan believes that Amazon’s advertising business is increasingly well-positioned in the broader ad landscape and will drive “consistent compounding potential” and high profit contribution. He expects Amazon’s ad business to continue expanding its supply and reach across new commerce verticals and media formats, driving revenue growth at a 16% compound annual growth rate (CAGR) from 2024 to 2028.
Is Amazon Stock a Buy, Sell, or Hold?
With 43 unanimous Buys, Wall Street has a Strong Buy consensus rating on Amazon stock. The average AMZN stock price target of $267 indicates a 20.2% upside potential. AMZN stock has risen about 2% year-to-date.
