What Analysts Think of Amazon Stock Ahead of Earnings
As Amazon (AMZN) prepares to report its fourth-quarter results after the market closes Thursday, analysts are overwhelmingly bullish on the tech titan’s stock. A total of 27 analysts covering the stock tracked by Visible Alpha have a “buy” or equivalent rating, with a consensus price target of roughly $259, about 7% above the stock’s closing price Tuesday.
Analysts’ Price Targets and Ratings
Here’s a breakdown of some of the notable analysts’ price targets and ratings:
– Jefferies: “Buy” rating, $275 price target
– Bank of America: “Buy” rating, $265 price target
– Morgan Stanley: “Overweight” rating, $260 price target
– Goldman Sachs: “Buy” rating, $255 price target
Jefferies Calls Amazon a Top Pick for Enterprise AI
Jefferies recently called Amazon a top pick for enterprise artificial intelligence, reiterating a “buy” rating and $275 price target for the stock. The firm pointed to growth from Amazon Web Services (AWS) and advertising opportunities as key drivers of the company’s success.
Amazon’s Spending on AI in Focus
Amazon’s spending on AI could also be in focus after Chinese AI startup DeepSeek rocked markets last week. DeepSeek’s claims that it developed an AI model rivaling those of American firms at a fraction of the cost raised concerns about Big Tech’s spending. When Microsoft (MSFT) and Meta (META) reported earnings last week, they stood by their aggressive spending plans.
Bank of America Analysts See “AI’s Sputnik Moment”
Bank of America analysts said last week they see this as “AI’s Sputnik moment,” suggesting competition could push U.S. hyperscalers like Amazon to spend even more on AI. This increased spending could have significant implications for Amazon’s stock price and the broader tech industry.
Q4 Earnings Expectations
Amazon is projected to report revenue of $187.42 billion, up 10% year-over-year, according to estimates compiled by Visible Alpha. Earnings are expected to come in at $16.02 billion, or $1.49 per share, up from $10.62 billion, or $1 per share, a year earlier.
Amazon’s Stock Performance
Shares of Amazon have gained about 43% over the past 12 months, closing at $242.06 on Tuesday. The stock’s performance has been driven by the company’s strong growth in cloud computing, advertising, and e-commerce.
Key Takeaways
– Analysts are overwhelmingly bullish on Amazon’s stock ahead of Q4 earnings
– Consensus price target is roughly $259, about 7% above the stock’s closing price Tuesday
– Amazon’s spending on AI could be in focus after Chinese AI startup DeepSeek’s claims
– Q4 earnings expectations are for revenue of $187.42 billion and earnings of $1.49 per share
EXCERPT
What Analysts Think of Amazon Stock Ahead of Earnings Amazon (AMZN) is slated to report its fourth-quarter results after the market closes Thursday, with analysts overwhelmingly bullish on the tech titan’s stock.1
Amazon. “Amazon Q4 2024 Earnings Call.”
All 27 analysts covering the stock tracked by Visible Alpha have a “buy” or equivalent rating. Their consensus price target is roughly $259, about 7% above the stock’s closing price Tuesday.
Jefferies recently called Amazon a top pick for enterprise artificial intelligence, reiterating a “buy” rating and $275 price target for the stock, pointing to growth from Amazon Web Services and advertising opportunities.2
Amazon’s spending on AI could also be in focus after Chinese AI startup DeepSeek rocked markets last week, as claims that it developed an AI model rivaling those of American firms at a fraction of the cost raised concerns about Big Tech’s spending. When Microsoft (MSFT) and Meta (META) reported earnings last week, they stood by their aggressive spending plans.
Bank of America analysts said last week they see this as “AI’s Sputnik moment,” suggesting competition could push U.S. hyperscalers like Amazon to spend even more on AI.
Amazon is projected to report revenue of $187.42 billion, up 10% year-over-year, according to estimates compiled by Visible Alpha. Earnings are expected to come in a $16.02 billion, or $1.49 per share, up from $10.62 billion, or $1 per share, a year earlier.
Shares of Amazon have gained about 43% over the past 12 months, at $242.06 as of Tuesday’s close.
Source: Investopdia
