Citigroup Raises Amazon.com Price Target to $265 from $225, Maintains Buy Rating

Citigroup Raises Amazon.com Price Target to $265 from $225, Maintains Buy Rating

Citigroup has raised its price target for Amazon.com (AMZN) to $265 from $225, while maintaining a Buy rating ahead of the company's second-quarter earnings report. The new target reflects optimism about Amazon's performance, particularly in its retail and Web Services (AWS) segments [1].

The price target increase comes as Citigroup anticipates Amazon's revenue and operating income to exceed consensus expectations. The analyst firm attributes this optimism to improving retail trends and rising demand for AWS services. Additionally, Amazon's expanding margins and robust financial performance are cited as key drivers of the positive outlook [2].

Amazon's recent financial results, released on May 1, 2025, showed a 10% year-over-year increase in revenue and a 20% increase in operating income. The company's AWS division also achieved a 17% year-over-year growth, reaching a $117 billion annualized revenue run rate. These positive trends are expected to continue, positioning Amazon well for the upcoming Back-to-School season [3].

Despite the positive outlook, Citigroup acknowledges potential challenges, such as capacity constraints in AWS and the impact of potential tariffs on pricing and demand. However, the firm remains bullish on Amazon's long-term prospects, citing the company's strong market position and innovative capabilities in AI and quantum computing [4].

The price target increase aligns with the broader Wall Street consensus, with analysts maintaining a Strong Buy rating on the stock. Other analysts, such as Scotiabank, have also raised their price targets for Amazon, reflecting confidence in the company's financial prospects [5].

Amazon's upcoming second-quarter earnings report on July 31, 2025, will provide further insights into the company's performance and guidance for the future. Investors and financial professionals should closely monitor the results and any subsequent analyst reactions [6].

References:
[1] https://www.tipranks.com/news/the-fly/amazon-com-price-target-raised-to-265-from-225-at-citi-thefly
[2] https://www.gurufocus.com/news/2992687/citi-analyst-increases-price-target-for-amazon-amzn-ahead-of-q2-report-amzn-stock-news
[3] https://www.investing.com/news/analyst-ratings/scotiabank-raises-amazon-stock-price-target-to-275-on-prime-day-strength-93CH-4145690
[4] https://www.investing.com/news/analyst-ratings/citi-raises-amazon-stock-price-target-to-265-on-aws-growth-outlook-93CH-4145282
[5] https://www.investing.com/news/analyst-ratings/scotiabank-raises-amazon-stock-price-target-to-275-on-prime-day-strength-93CH-4145690
[6] https://www.investing.com/news/analyst-ratings/citi-raises-amazon-stock-price-target-to-265-on-aws-growth-outlook-93CH-4145282