Amzn Stock Gains Momentum as Analysts Raise Price Targets Ahead of Earnings Report

Amazon is set to report its second-quarter earnings, and analysts are optimistic about the trajectory of the online retail and cloud services giant. All 26 analysts tracked by Visible Alpha have given Amazon's stock a "buy" or equivalent rating, with an average price target nearing $250, surpassing the previous record close of $242.06 on February 4. This positive sentiment comes amidst a year where the stock has added approximately 5%, trading near $231 in recent sessions.

For the upcoming earnings report, Amazon is expected to announce a revenue increase of nearly 10% to $162.19 billion. Additionally, earnings per share are projected to rise to $1.33 from $1.26 in the same period last year. This anticipated growth follows a notable earnings beats last quarter despite concerns over tariffs impacting consumer shopping behavior. These concerns were mitigated by the success of the longest-ever four-day Prime Day sales event held earlier this month, which achieved record sales. Notably, the revenue from this Prime Day event will be reflected in Amazon's third-quarter results.

Analysts have been revising their price targets for Amazon stock upward in light of robust market indicators and strategic positioning. Deutsche Bank analysts increased their price target from $230 to $266, expressing confidence in the resilient consumer landscape and continued postponement of tariff-related cost hikes. These factors are anticipated to bolster Amazon's performance in both the second and third quarters. The shift in consumer behavior away from low-cost Chinese platforms, aided by the Trump administration's policy changes on de minimis import exemptions, is seen as contributing to Amazon's growing e-commerce market share.

On the retail front, Bank of America analysts have raised their price target to $265 from $248, with expectations that Amazon's retail sales will exceed estimates. While predicting a potential slowdown in Amazon Web Services' (AWS) revenue growth from the first quarter, they anticipate acceleration in the latter half of the year driven by robust demand for AI and expansion of AWS capacity.

Similarly, analysts at HSBC and Citi have revised their targets upward to $256 and $265, respectively. HSBC analysts affirm Amazon's strategic positioning to weather ongoing tariff uncertainties. Meanwhile, Citi analysts are focusing on commentary related to the scaling of AWS infrastructure, which is anticipated to drive cloud service growth throughout the year.

As Amazon approaches its earnings announcement, the broader analyst consensus underscores a bullish outlook, hinging on strong consumer demand, strategic expansion in cloud services propelled by AI, and adept navigation of tariff challenges. These factors collectively paint an energized picture for Amazon's stock as the company continues to chart a course for sustainable growth.