Forecast: Amazon is Set for a Significant Resurgence in the Next Three Years—Here's One Key Reason.
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Updated: Sep 30 20250mins
Amazon's Stock Performance: Amazon's stock has remained flat through September 30, underperforming compared to major indexes like the S&P 500 and Nasdaq, despite being seen as a strong long-term investment.
AWS Growth Concerns: Investors are disappointed with the growth of Amazon Web Services (AWS) compared to competitors like Microsoft Azure and Google Cloud, although AWS still reported a 17.5% year-over-year revenue increase.
Investments in AI and Cloud Infrastructure: Amazon is making significant investments in AWS and AI infrastructure, including building new data centers and designing its own AI chips, which may temporarily reduce margins but are expected to benefit the company in the long run.
Future Market Potential: The global AI market is projected to grow significantly, and Amazon aims to position AWS as a leading provider of cloud infrastructure and AI tools for enterprises, which could offset any potential loss in market share.
AMZN.O
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.71 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
40 Buy
3 Hold
0 Sell
Strong Buy
Current: 230.280
Low
250.00
Averages
294.71
High
340.00
Current: 230.280
Low
250.00
Averages
294.71
High
340.00
TD Cowen
Buy
maintain
$300
2025-12-10
New
Reason
TD Cowen
Price Target
$300
2025-12-10
New
maintain
Buy
Reason
TD Cowen keeps a Buy rating and $300 price target on Amazon.com after the company announced that it has expanded its Same-Day delivery of fresh groceries to over 2,300 cites and towns. Faster delivery speed helps drive higher conversion, in turn driving the Prime flywheel, and today's announcement underscores this trend, as Prime customers ordering fresh groceries shop "twice as often" vs. those who don't order fresh, the analyst tells investors in a research note. The improved selection with perishable food services should continue to drive Amazon's overall growth in the broader grocery category, the firm added.
Guggenheim
Steven Forbes
Buy
initiated
$300
2025-12-09
New
Reason
Guggenheim
Steven Forbes
Price Target
$300
2025-12-09
New
initiated
Buy
Reason
Guggenheim analyst Steven Forbes initiated coverage of Amazon.com with a Buy rating and $300 price target.
Guggenheim
NULL
to
Buy
initiated
$300
2025-12-09
New
Reason
Guggenheim
Price Target
$300
2025-12-09
New
initiated
NULL
to
Buy
Reason
Guggenheim initiated coverage of Amazon.com with a Buy rating and $300 price target. The retail sector still seems to be perceived as "structurally sick," but the firm says "holiday brought the cheer," tariffs have been manageable so far and "most importantly and likely going unnoticed" is the fact that the majority of the firm's coverage actually operates at, or close to, their gross margin peaks.
Benchmark
Cody Acree
Buy
to
Hold
downgrade
2025-12-08
New
Reason
Benchmark
Cody Acree
Price Target
2025-12-08
New
downgrade
Buy
to
Hold
Reason
As previously reported, Benchmark analyst Cody Acree downgraded Marvell (MRVL) to Hold from Buy and removed the firm's price target on shares. Following "extensive industry meetings" during the firm's recent Silicon Valley bus tour, the analyst now has "a high degree of conviction" that the company has lost both Amazon's (AMZN) Tranium 3 and 4 designs to its Taiwanese competitor, Alchip, and views this as the primary factor in the company's projected slowing to only 20% XPU growth in calendar 2026, the analyst tells investors. While the firm believes the company is "being forthright" in its guidance for increasing annual Amazon revenue, it believes this commitment is driven by expected continued Tranium 2 volumes and a Kuiper low-earth orbit engagement, not the successful transition to Tranium 3 designs as many on the sell-side have concluded.
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About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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