Evercore ISI Maintains Buy Rating for Amazon with $280 Price Target

Evercore ISI maintains a Buy rating for Amazon (AMZN) with a price target of $280.00. Analyst Mark Mahaney has a 5-star rating with a 14.3% average return and 58.16% success rate. Wells Fargo reiterated a Hold rating on August 1. Amazon's one-year high is $242.52 and one-year low is $151.61.

Amazon (NASDAQ: AMZN) experienced a significant drop in its stock price following its second-quarter earnings report, with shares falling by 8.3% to close at $214.75. The e-commerce giant reported adjusted earnings per share (EPS) of $1.68, up 33% year-over-year, which easily beat the $1.33 forecast by analysts polled by FactSet. However, the company's operating income guidance for the third quarter came in below expectations, and its cloud business, Amazon Web Services (AWS), showed slower growth compared to its peers [2].

The retail business of Amazon performed well, with the company projecting Q3 revenue at the midpoint of its range of $176.75 billion, exceeding analyst estimates. However, AWS revenue grew by 17.5%, missing the 39% growth rate of Microsoft Azure and the 32% growth of Google Cloud. This underperformance in the cloud segment has raised concerns about Amazon's ability to capitalize on the growing AI market [2].

Chief Executive Officer Andy Jassy acknowledged the challenges in the cloud business, stating that the company is still in the early stages of generative AI and that its cost advantages and existing client base will benefit it in the long run. However, this commentary did not alleviate investor fears, leading to a significant drop in the stock price after the earnings call [2].

Analysts have mixed views on Amazon's prospects. Evercore ISI maintains a Buy rating for Amazon with a price target of $280.00, citing strong fundamentals and growth potential. Wells Fargo, however, reiterated a Hold rating on August 1, expressing concerns about the company's operating income guidance and the potential impact of tariffs on profits [3].

Despite the recent drop, Amazon's stock has shown resilience, gaining 7% year to date as of Thursday's close. The company's stock has rebounded from a spring slump, with an 18% gain from May through June, following the easing of tariffs on Chinese goods. The IBD Stock Checkup tool shows Amazon stock holds an IBD Composite Rating of 95 out of 99, indicating strong growth potential [2].

References:
[1] https://seekingalpha.com/news/4476399-what-analysts-are-saying-about-amazon-after-its-post-earnings-decline
[2] https://www.inkl.com/news/amazon-stock-falls-despite-earnings-beat-tech-giant-offers-mixed-outlook
[3] https://www.marketbeat.com/instant-alerts/wells-fargo-company-forecasts-strong-price-appreciation-for-amazoncom-nasdaqamzn-stock-2025-07-29/