Amazon Stock Forecast: Top Analysts Predict 8% Rally for AMZN

Amazon's stock price is expected to rally more than 8% according to top analysts. Analysts at Wedbush raised the price target for Amazon from $235 to $250. Other analysts raised price targets for Mondelez International, MARA Holdings, Johnson Controls International, Starbucks Corporation, DICK’S Sporting Goods, Sysco Corporation, Booking Holdings, Armstrong World Industries, and Spotify Technology.

Amazon (AMZN) stock is anticipated to rally more than 8% according to top analysts, with Wedbush analyst Scott Devitt raising the price target from $235 to $250. This optimistic outlook comes amidst a broader trend of analysts raising their price targets for several companies, including Mondelez International, MARA Holdings, Johnson Controls International, Starbucks Corporation, DICK’S Sporting Goods, Sysco Corporation, Booking Holdings, Armstrong World Industries, and Spotify Technology.

The latest earnings preview from Wedbush highlights the company's expected performance, with adjusted earnings expected to increase by 5% to $1.33 per share. Sales are forecast to grow by 10% to $162.19 billion. Analysts are closely watching Amazon's operating income, which is projected to rise by 15% to $16.87 billion, and its high-margin advertising business, expected to grow by 17% to $14.99 billion.

The shift in Amazon's advertising strategy, as seen in its decision to halt spending on Google Shopping ads, is another factor influencing investor sentiment. This move, cited in GuruFocus, marks a strategic pivot away from Google's platform, potentially indicating a focus on other advertising channels [2].

The upcoming second quarter results, expected to be released late Thursday, will be pivotal in assessing the impact of AI demand on Amazon's cloud business and the broader effects of tariffs on its e-commerce operations. Analysts are particularly interested in AWS's performance, which contributed 58% of Amazon's total operating income last year.

Despite recent market fluctuations, Amazon stock has shown resilience, with a year-to-date gain of approximately 5%, trailing the S&P 500's nearly 8% increase. However, the stock has rebounded significantly from earlier this spring, following the easing of tariffs on Chinese goods.

MarketBeat's consensus rating for Amazon is a "Buy," with 49 analysts providing ratings. The average price target stands at $255.21, representing a potential upside of 10.91% from the current price of $230.11. This optimism is reflected in the IBD Composite Rating of 95, indicating strong growth potential.

Overall, the positive outlook for Amazon stock reflects a combination of robust earnings projections, strategic shifts in advertising, and analyst confidence in the company's future performance.

References:
[1] https://www.investors.com/news/technology/amazon-stock-amzn-news-q2-preview/
[2] https://www.gurufocus.com/news/3017786/amazon-amzn-exits-google-shopping-ad-auctions
[3] https://www.marketbeat.com/stocks/NASDAQ/AMZN/forecast/