Jefferies analysts expressed strong confidence in Amazon (NASDAQ:AMZN), raising their price target to $235 from $225 per share. They highlighted robust growth in Amazon Web Services and advertising sectors as key reasons for their optimism.
Jefferies cited the combined momentum of AWS and advertising, along with retail operating leverage, as supportive of an 18%+ upside to their $235 target price.
The analysts emphasized that high-growth, high-margin segments significantly contribute to Amazon's overall value. They noted that 71% of Amazon's $2.5 trillion sum-of-the-parts enterprise value (SOTP EV) is derived from AWS and advertising, compared to only 26% from core retail.
They project AWS revenue growth to increase from 13% in Q4/23 to 21% in Q4/24, driven by diminishing cost optimization headwinds and rising demand for cloud modernization, especially with the integration of next-generation Artificial Intelligence.
In the advertising sector, Jefferies anticipates stable growth of over 20%, with additional gains expected from Prime Video. Their estimates suggest $2.9 billion in ad sales and around $800 million in incremental subscription sales from ad-free options on Prime Video in 2024, leading to a net sales increase of $3.7 billion.
Even Amazon's core retail business shows potential for improvement, focusing on better efficiency to drive higher margins. Jefferies concludes by highlighting the attractive valuation of Amazon stock, noting it trades at 13.6 times their 2025 EV/EBITDA estimate, which is about a 25% discount to the 10-year average of approximately 18 times.
Symbol | Price | %chg |
---|---|---|
BELI.JK | 400 | 1.5 |
MAPA.JK | 700 | 0.71 |
BUKA.JK | 125 | -0.8 |
ACES.JK | 494 | -0.4 |
JPMorgan increased its price target on Amazon (NASDAQ:AMZN) to $240 from $225, reiterating an Overweight rating on the stock. The firm pointed to Amazon’s dominant positions in both e-commerce and cloud computing as key drivers of long-term growth.
Analysts highlighted that e-commerce still accounts for only about 20% of U.S. adjusted retail sales, while just 10% of IT spending has shifted to the cloud—indicating considerable room for expansion in both segments. Amazon Web Services (AWS), which holds an estimated 31% share of the global cloud market, remains a central pillar of profitability.
In the retail space, Amazon’s ability to toggle between first-party and third-party inventory, along with the strength of its Prime ecosystem, gives it flexibility and customer stickiness. The company is also benefiting from high-margin segments like AWS and advertising, which are expected to support ongoing margin and free cash flow growth.
JPMorgan sees Amazon on track to deliver multi-year operating margin expansion in North America and sustained improvements in free cash flow generation.
Amazon (NASDAQ:AMZN) is a global leader in e-commerce and cloud computing. Known for its vast online marketplace, Amazon generates about 80% of its revenue from selling physical goods and services like Prime. The remaining 20% comes from its cloud computing division, Amazon Web Services (AWS). Despite its high valuation, Bank of America Securities maintains a "Buy" rating for Amazon.
Amazon's stock is currently trading at $171.18, as reported by Benzinga. This comes after a significant decline of over 30% from its peak in early February. The downturn is largely due to concerns over tariff-induced economic weakness affecting the broader market. Despite this, some investors believe the market may be underestimating Amazon's potential.
The stock price today is $171.17, reflecting a 2.30% increase, or $3.85. During the trading day, it fluctuated between $169.37 and $171.26. Over the past year, Amazon's stock has seen a high of $242.52 and a low of $151.61. This volatility highlights the challenges and opportunities in the current market environment.
Amazon's market capitalization is approximately $1.82 trillion, underscoring its significant presence in the global market. Today's trading volume on the NASDAQ is 6,545,944 shares, indicating strong investor interest. Despite being a target for bearish investors, some see this as an opportunity to buy Amazon stock while it is undervalued.
Amazon (NASDAQ:AMZN) is a global leader in e-commerce and cloud computing. Known for its vast online marketplace, Amazon generates about 80% of its revenue from selling physical goods and services like Prime. The remaining 20% comes from its cloud computing division, Amazon Web Services (AWS). Despite its high valuation, Bank of America Securities maintains a "Buy" rating for Amazon.
Amazon's stock is currently trading at $171.18, as reported by Benzinga. This comes after a significant decline of over 30% from its peak in early February. The downturn is largely due to concerns over tariff-induced economic weakness affecting the broader market. Despite this, some investors believe the market may be underestimating Amazon's potential.
The stock price today is $171.17, reflecting a 2.30% increase, or $3.85. During the trading day, it fluctuated between $169.37 and $171.26. Over the past year, Amazon's stock has seen a high of $242.52 and a low of $151.61. This volatility highlights the challenges and opportunities in the current market environment.
Amazon's market capitalization is approximately $1.82 trillion, underscoring its significant presence in the global market. Today's trading volume on the NASDAQ is 6,545,944 shares, indicating strong investor interest. Despite being a target for bearish investors, some see this as an opportunity to buy Amazon stock while it is undervalued.
Amazon.com (NASDAQ:AMZN) shares fell nearly 2% pre-market today after Raymond James downgraded the company from Strong Buy to Outperform and cut its price target to $195 from $275, citing rising near-term margin risks and a cloudier investment return timeline. While the firm remains positive on Amazon’s long-term AI and infrastructure initiatives, it believes the market is underestimating the potential EBIT pressure for 2025 and 2026.
Analysts highlight that Amazon’s exposure to China—accounting for roughly 30% of GMV and 15% of ad revenue—along with its dependence on U.S. rural delivery services, could create drag as the company diversifies its supply chain and logistics network in response to macro uncertainty and new tariff threats.
While long-term fundamentals remain intact, the report suggests other names like Meta, Uber, and MercadoLibre offer clearer ROI visibility and near-term catalysts, prompting the shift in recommendation.
Amazon.com (NASDAQ:AMZN) shares fell nearly 2% pre-market today after Raymond James downgraded the company from Strong Buy to Outperform and cut its price target to $195 from $275, citing rising near-term margin risks and a cloudier investment return timeline. While the firm remains positive on Amazon’s long-term AI and infrastructure initiatives, it believes the market is underestimating the potential EBIT pressure for 2025 and 2026.
Analysts highlight that Amazon’s exposure to China—accounting for roughly 30% of GMV and 15% of ad revenue—along with its dependence on U.S. rural delivery services, could create drag as the company diversifies its supply chain and logistics network in response to macro uncertainty and new tariff threats.
While long-term fundamentals remain intact, the report suggests other names like Meta, Uber, and MercadoLibre offer clearer ROI visibility and near-term catalysts, prompting the shift in recommendation.
Wedbush reiterated its Outperform rating on Amazon.com (NASDAQ:AMZN) and maintained its $280 price target, highlighting the company's growing dominance in the digital advertising space.
Amazon is steadily gaining momentum with advertisers, thanks to its unmatched retail infrastructure, extensive customer data, and powerful merchandising tools. The firm noted that recent upgrades to Amazon’s Demand-Side Platform (DSP) have made it a more formidable competitor, particularly in comparison to key players like The Trade Desk.
Another key development is the ad-supported rollout of Prime Video, which has opened up a new stream of revenue. Over the past year, this move has successfully attracted advertising dollars—not only from other digital platforms but also from traditional linear TV budgets—thanks to Amazon’s reach, targeting precision, and wealth of first-party consumer data.
Wedbush believes these advancements solidify Amazon’s position as a top-tier player in digital advertising, with substantial room for further growth. The firm sees the advertising segment as a strategic engine of margin expansion and a core component of Amazon’s broader monetization strategy.
Wedbush reiterated its Outperform rating on Amazon.com (NASDAQ:AMZN) and maintained its $280 price target, highlighting the company's growing dominance in the digital advertising space.
Amazon is steadily gaining momentum with advertisers, thanks to its unmatched retail infrastructure, extensive customer data, and powerful merchandising tools. The firm noted that recent upgrades to Amazon’s Demand-Side Platform (DSP) have made it a more formidable competitor, particularly in comparison to key players like The Trade Desk.
Another key development is the ad-supported rollout of Prime Video, which has opened up a new stream of revenue. Over the past year, this move has successfully attracted advertising dollars—not only from other digital platforms but also from traditional linear TV budgets—thanks to Amazon’s reach, targeting precision, and wealth of first-party consumer data.
Wedbush believes these advancements solidify Amazon’s position as a top-tier player in digital advertising, with substantial room for further growth. The firm sees the advertising segment as a strategic engine of margin expansion and a core component of Amazon’s broader monetization strategy.