Analysts unveil bold Amazon stock price target before earnings

Amazon (AMZN) is doubling down on generative synthetic intelligence.

The retail and tech large plans to realize Bee AI, a originate-up that makes AI-powered wearable devices. The transfer indicators Amazon’s entry into the arena of private AI hardware, competing with gamers like Meta (META) and Apple (AAPL) .

Bee makes a $50 bracelet that recordsdata and transcribes an particular individual’s every day conversations. It then makes use of AI to generate to-attain lists, reminders, and moderately a couple of actually helpful duties.

Amazon confirmed that a deal has been signed, even when it is no longer yet closed. The firm did no longer tag the aquire price.

Shares of Amazon are up 4% to this level this year, trailing the S&P 500’s 8.1% own. As the second-quarter earnings season heats up, and with Alphabet already posting actual results, Amazon’s upcoming file may even be yet any other key side, as a actual beat or a disappointing miss may spark entertaining strikes in the stock.

Amazon is scheduled to file its second-quarter earnings on July 31 next week.

What to transfer trying for in Amazon's upcoming earnings file

Retail stays Amazon’s biggest income driver and a actually great provide of income. Whereas the firm’s guidance earlier this year mirrored caution around tariffs, Deutsche Monetary institution analyst Lee Horowitz sees causes for optimism.

Horowitz wrote in a research show that tariff concerns possess been a key focal level when Amazon gave its Q2 guidance, but with actual user demand and tariff-linked price hikes being delayed, there’s room for Amazon to beat Q2 and Q3 estimates.

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"What has change into abundantly determined is that in the absence of Temu and Shein, Amazon fragment beneficial properties possess accelerated," he added.

Amazon’s High Day, held in July, falls exterior the second-quarter duration but may impact the firm’s third-quarter guidance.

Within the intervening time, Amazon Web Products and services continues to plot attention. The cloud swap is Amazon’s most a hit segment and a key driver of prolonged-term valuation.

Though AWS stays the area chief in cloud market fragment, rivals Microsoft and Google are rising faster.

Within the first quarter of 2025, AWS held 29% of the market, followed by Microsoft at 22% and Google at 12%, per knowledge from Synergy Study Crew. When put next with the old quarter, AWS misplaced one share level whereas Microsoft obtained one.

Analysts lift Amazon stock price target earlier than earnings

Monetary institution of The US has raised Amazon's stock price target to $265 from $248 and reiterated a aquire rating earlier than the Q2 earnings.

The firm expects a beat in the retail sector and may focal level on AWS's growth for the year's second half.

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For AWS, Monetary institution of The US estimates a income of $17.8 billion in the second quarter, topping both the Avenue’s estimate of $17 billion and Amazon’s own guidance high of $17.5 billion.

"We judge 2Q Retail is surroundings up for a solid quarter, plus a actual 1Q for AWS backlog and accelerating quarterly AWS capex spending should force accelerating 2H AWS growth," the analysts wrote in a research file.

For the third quarter, Amazon expects income between $169 billion and $174 billion, when in contrast with Wall Avenue's forecast of $172.8 billion. The firm guided GAAP working earnings between $14 billion and $18 billion, beneath the Avenue consensus of $19.4 billion.

"Our income knowledge expectation assumes a long High Day match is a modest income for elephantine quarter, and that AWS speeds up reasonably," the firm wrote. "Our income outlook relies on Amazon's historical q/q conservatism."

Citi also raised its price target on Amazon to $265 from $225 with a aquire rating, citing bettering retail developments.

The analysts added that rising demand for AWS and better margins construct the stock remain one in all Citi’s high cyber web picks.

Amazon stock closed at $228.29 on July 23.

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