Here’s what Wall Street analysts are saying after Amazon’s third-quarter earnings
Wall Street analysts think Amazon is only at the beginning of a new era of growth. The e-commerce giant gained more than 6% after third-quarter results beat analyst estimates on the top and bottom line . The company’s cloud segment, Amazon Web Services, slightly missed analyst estimates for revenue in the third quarter — but was still up nearly 20% year on year. Operating income, meanwhile, soared The company is also continuing to spend big on generative artificial intelligence akin to peers in the technology sector. Amazon’s capital expenditures surged 81% year-over-year in the third-quarter, ballooning to $22.62 billion. Here’s what analysts at some of the biggest shops on Wall Street are saying about Amazon’s latest earnings report. JPMorgan raises its price target to $250 per share from $230 Analyst Doug Anmuth reiterated his overweight rating on Amazon stock. His $250 per share price target implies more than 34% upside from Thursday’s close. “We believe Amazon is well positioned as the market leader in e-commerce and public cloud, where the secular shifts remain early—US e-commerce represents ~20% of adjusted retail sales, and we estimate only ~10% of IT spend is in the cloud today,” Anmuth said. Bank of America price target goes to $230 per share from $210 BofA analyst Justin Post maintained his buy rating on Amazon, and his upped forecast calls for more than 23% upside moving forward. “Another margin upside surprise supports our retail margin efficiency upside thesis, while AWS is still in the early innings of a big AI cycle and is investing accordingly,” Post said. “Amazon’s proprietary AI chip technology (Trainium2) could be underappreciated in the stock.” Deutsche Bank ups target price to $232 from $225, raises earnings forecast 4% Analyst Lee Horowitz stood by his buy rating on Amazon, and his $232 price target implies more than 24% upside moving forward. The analyst also increased his 2025 full-year earnings per share forecast by roughly 4%. “We continue to believe with AMZN shares trading below peers like WMT while delivering operating income growth over the next three years that is expected to be at least 3x faster than its brick and mortar peer, current levels present a compelling entry point for AMZN shares,” Horowitz said. Citi goes to $252 per share from $245 Analyst Ronald Josey’s buy rating and $252 per share forecast calls for about 35% upside on Amazon. “We emerge from Amazon’s 3Q24 results incrementally confident that the company can invest in growth while delivering significant margin expansion,” Josey said.
