Amazon.com (NasdaqGS:AMZN) Partners With Amplitude To Enhance Global Customer Experience

Amazon.com (NasdaqGS:AMZN) experienced a 12.6% rise in its stock price over the last month, which could be linked to several impactful events. The strategic collaboration between Amplitude and Amazon Web Services (AWS) aimed at optimizing digital shopping experiences and customer engagement may have bolstered investor confidence. Additionally, Amazon's Q1 2025 earnings report showing significant revenue and net income growth likely played a role in the price increase. Despite broader market fluctuations due to tariff discussions and varying performances among tech stocks, these company-specific developments likely reinforced the upward trajectory of Amazon's stock.

Buy, Hold or Sell Amazon.com? View our complete analysis and fair value estimate and you decide.

Find companies with promising cash flow potential yet trading below their fair value.

The recent surge in Amazon.com's stock price can be partially attributed to key developments such as the collaboration with Amplitude and the positive Q1 2025 earnings report. These factors strengthen Amazon's position in digital shopping and highlight its revenue and net income growth. Over the past three years, Amazon has achieved a total shareholder return of 79.63%, demonstrating substantial long-term value generation for investors.

In the past year, however, Amazon underperformed the US Market, which returned 8.2%, and the US Multiline Retail industry, which returned 5.4%. Despite this short-term underperformance, the company’s ongoing initiatives in fulfillment efficiency, AWS expansion, and AI advancements suggest potential for enhanced revenue and earnings in the future.

The current share price of US$185.01 reflects a discount of approximately 22.7% to the analyst consensus price target of US$239.33. This indicates that there is potential upside according to analysts, assuming revenue growth, profit margins, and other risk factors align as forecasted. The company's efforts to improve operational efficiency and diversify its supply chain could have a positive impact on revenue and earnings forecasts, potentially increasing its long-term valuation. However, external risks like tariffs and competitive pressures in cloud services remain uncertainties that could influence future financial outcomes.

According our valuation report, there's an indication that Amazon.com's share price might be on the cheaper side.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com