AnalystConsensusTarget updated the narrative for AMZN

Amazon.com’s analyst price target increased modestly to $266.56 from $263.74, as analysts point to anticipated acceleration in AWS growth along with sustainable improvements in revenue and profit metrics.

Analyst Commentary

Recent research notes reveal a spectrum of optimism and caution among analysts covering Amazon.com as they assess the company's valuation, execution, and future growth prospects. The following takeaways highlight both the bullish and bearish perspectives shaping sentiment around the stock:

• Bullish analysts are increasingly optimistic about Amazon Web Services (AWS). They see strong potential for accelerated revenue growth as new capacity comes online in late 2025 and 2026, which could drive meaningful upside to overall growth rates.
• The expansion of Amazon’s grocery and retail delivery footprint is considered highly positive. It is expected to deepen customer engagement, enhance Prime's value proposition, and generate higher purchase frequency and wallet share.
• Recent price target increases often cite positive North America retail metrics, sustained order volume, and the company’s ability to maintain resilient retail and advertising trends. These factors help bolster near-term revenue visibility.
• Artificial intelligence and partnerships, such as those with Anthropic, are seen as catalysts for AWS and broader company performance. Analysts note that these could help Amazon capture emerging growth opportunities and improve operating efficiency.

• Bearish analysts are cautious on AWS. They highlight occasional disappointments in margin and growth relative to peers and warn that the pace of AWS share recovery may be slower than some investors expect.
• Amazon’s push into ultra-competitive sectors like grocery introduces margin risk and operational complexity. Some analysts flag the potential for operating income dilution if aggressive market share capture is pursued.
• Competitive pressures from established players in both tech and retail, such as Microsoft, Google, Walmart, and Instacart, are viewed as ongoing headwinds. These could constrain Amazon’s ability to rapidly expand share in key categories.
• While Amazon’s investments in logistics and new offerings are seen as long-term positives, some analysts note the need to monitor execution risks and possible near-term challenges in markets where customer adoption or regulatory hurdles persist.

What's in the News

• Amazon to restart drone delivery in Arizona despite ongoing FAA and NTSB crash investigations. The company is introducing enhanced visual landscape inspections for improved safety (TechCrunch).
• Amazon devices VP Rob Williams announces departure following the showcase of new devices and services. A full exit from the company is expected by the end of 2025 (Reuters).
• Amazon faces federal investigations after two Prime Air drones collided with a crane in Arizona, leading to a temporary halt of local drone services. No injuries were reported (CNBC).
• AWS CEO Matt Garman criticizes staff for slow product rollouts during an all-hands meeting and demonstrates a new agentic AI product for internal testing (Reuters).
• Amazon agrees to pay $2.5 billion to settle an FTC case over alleged deceptive Prime subscription practices (Bloomberg).

Valuation Changes

• Consensus Analyst Price Target has risen slightly, moving from $263.74 to $266.56.
• The discount rate has fallen marginally from 8.44% to 8.34%, reflecting a modest reduction in perceived risk.
• Revenue growth projection has increased slightly from 10.59% to 10.64%.
• Net profit margin estimate has edged up from 12.35% to 12.38%.
• Future P/E ratio has increased marginally, moving from 33.43x to 33.58x.