Amazon Stock Price Predictions for 2025: Will It Reach $280?
In 2024, Amazon stock (AMZN) had an impressive run, with a more than 44% increase in share price. This surge was driven by strong corporate earnings, a dominant cloud computing division, and advancements in artificial intelligence. The good news is, analysts believe that Amazon’s upward trajectory will continue in 2025.
Looking ahead, Wall Street predicts that Amazon’s e-commerce business will become even more profitable, allowing the company to invest further in generative AI technology. Amazon CEO Andy Jassy highlighted the company’s significant progress in machine learning and AI features compared to other cloud providers.
The bright outlook for Amazon’s future is reflected in stock price predictions for 2025. Here are a few forecasts from different analysts:
– Evercore ISI: $260
– TD Cowen: $265
– Bernstein: $265
– Truist Bank: $270
– JPMorgan: $280
One compelling argument for Amazon’s continued success comes from Evercore ISI analyst Mark Mahaney. He believes that the strong performance of AWS will lead to increased earnings for the company. In the third quarter, Amazon saw a surge in net sales and a notable improvement in net income.
TD Cowen also raised its 2025 price target for Amazon, emphasizing the potential of AWS and advertising businesses to drive profitability. They see Amazon as a leader in AI, which is fueling innovation across its platforms.
Bernstein echoed similar sentiments, praising Amazon’s strong e-commerce business and projecting growth in ad revenue. They anticipate significant profit growth for Amazon by 2026, further solidifying their positive outlook.
Truist Bank maintained its buy rating for Amazon, setting a price target of $270 based on the company’s stellar third-quarter earnings report. Despite concerns about growing capital expenditures, Truist remains optimistic about Amazon’s investment in AI.
JPMorgan is particularly bullish on Amazon’s potential, naming it one of their top stock picks for 2025. They foresee significant growth in Amazon’s AI business and have set a price target of $280.
As we look forward to the next year, Amazon’s success in various sectors, from e-commerce to cloud computing, should continue to drive its stock performance. Keep an eye on factors like e-commerce growth, advancements in AI and cloud computing, which could influence Amazon’s stock price in the future.