Amazon: Barclays raises PT to $275, maintains Overweight rating.

Amazon: Barclays raises PT to $275, maintains Overweight rating.

July 02, 2025

In a significant move, Barclays has raised its price target on Amazon.com (NASDAQ: AMZN) to $275.00, up from $240.00, while maintaining an Overweight rating on the stock [1]. The stock is currently trading at $234.11, near its 52-week high, with a market capitalization of $2.49 trillion.

The decision by Barclays is based on Amazon’s strong second-quarter performance, which exceeded expectations. Revenue and operating income came in 3% and 14% above consensus estimates, respectively. The company also provided guidance that surpassed market expectations, maintaining robust revenue growth at 10.08% and receiving upward earnings revisions from 10 analysts [1].

Despite near-term concerns about Amazon Web Services (AWS) due to competitors' accelerating revenue and backlogs related to artificial intelligence, as well as a margin miss in the segment, Barclays remains confident in Amazon's overall financial health. The firm’s "GREAT" financial health score on InvestingPro underscores this confidence [1].

Barclays expects AI to contribute several percentage points to AWS growth by the fourth quarter of 2025, particularly through Amazon's partnership with Anthropic. If Anthropic reaches its projected $9 billion annual recurring revenue by year-end, it could significantly boost AWS revenue [1].

Moreover, Amazon's retail division delivered strong second-quarter results, with accelerating metrics across key lines and efficiency reaching all-time highs, suggesting continued market share gains in e-commerce [1].

Recent financial results for the second quarter of 2025 further bolstered Amazon's stock. The company achieved a revenue of $167.7 billion, surpassing the anticipated $162.05 billion, while its earnings per share reached $1.68, compared to the forecasted $1.32. Following these results, BofA Securities raised its price target for Amazon to $272, maintaining a Buy rating, highlighting strong retail growth [2]. Similarly, DA Davidson increased its price target to $265, also upholding a Buy rating, after Amazon outperformed market expectations on both revenue and profit [2]. Goldman Sachs joined in by raising its price target to $240, emphasizing Amazon’s strategic focus on e-commerce operations and market opportunities despite tariff uncertainties [2].

These developments reflect the positive sentiment among analysts regarding Amazon’s financial health and strategic direction.

References:
[1] https://uk.investing.com/news/analyst-ratings/barclays-raises-amazon-stock-price-target-to-275-on-ai-potential-93CH-4196406
[2] https://www.investing.com/news/analyst-ratings/barclays-raises-amazon-stock-price-target-to-275-on-ai-potential-93CH-4165303