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Amazon's stock outlook is positive, with analysts giving a ‘Strong Buy’ rating and projecting price targets over $260.
Amazon’s growth depends on its strategic investments in AI, stake in Anthropic, and new projects like Kuiper for satellite internet.
Despite a strong Q2 2025 earnings report, Amazon's stock saw a decline as concerns about macroeconomic risks and cloud market competition stalled its growth.
Amazon.com, Inc. holds a strong position in the global technology and e-commerce industry. The stock is currently trading at around $232.33, showing a modest daily decline of about 1.4%. During the most recent trading session, the stock moved between $231.94 and $236.22 after opening at $235.09. Trading volumes remained strong at over 36 million shares, showing the ongoing investor interest in the company.
Analysts remain largely optimistic about Amazon’s growth prospects. A consensus of 45 analysts has given the stock a “Strong Buy” rating, with an average 12-month target price of $261.76. This represents an upside potential of nearly 13%. The Amazon stock price targets range from as low as $195 on the bearish side to as high as $305 on the bullish side. Another market consensus places the average target even higher at $262.87, reinforcing the confidence that the stock has more room to grow.
Leading investment banks and financial institutions have recently raised their targets. UBS has set a target of $271, Jefferies and Bank of America both stand at $265, while Morgan Stanley remains the most optimistic, calling Amazon its “top pick” with a target of $300 and a possible bull-case of $350. These projections are tied closely to Amazon’s potential in cloud computing, artificial intelligence, and new business ventures.
Algorithmic models also provide their Amazon stock price predictions. CoinCodex suggests Amazon might trade between $217 and $249 in 2025, with an average near $230.67, offering modest returns. Long-term forecasts show the possibility of the stock ending at $257 in 2025, with further gains into 2026 and beyond, potentially reaching levels above $400.
Amazon’s future outlook is strongly tied to its role in artificial intelligence and cloud services. The company holds a 15% to 19% stake in Anthropic, a leading AI startup. With Anthropic now valued at $183 billion, Amazon’s cloud unit AWS stands to gain significantly as the primary provider of services to the company. By 2026, this relationship is expected to generate as much as $5 billion in cloud revenues, strengthening AWS’s dominance in the market.
Technically, Amazon shares have recently broken above important trendlines, attracting attention from traders and institutions. Positive signals from its space internet initiative, Project Kuiper, and the deepening ties with Anthropic have further supported investor enthusiasm.
Interestingly, implied volatility in Amazon options has dropped to its lowest levels since 2021. This has made options strategies such as straddles and bullish calls more attractive for traders seeking to benefit from upcoming earnings or strategic announcements.
Also Read: Is Amazon a Good Stock to Buy? A 2025 Investor’s Perspective
Amazon’s latest earnings for the second quarter of 2025 showed strong results. The company reported revenues of $167.7 billion, marking a year-on-year increase of 13%. Earnings per share came in at $1.68, comfortably surpassing Wall Street estimates. AWS, the company’s crown jewel, posted revenue growth of 17%, reaching $30.87 billion. Prime Day sales and continued investment in AI technologies contributed to this performance.
However, despite these strong numbers, Amazon’s forward guidance left investors disappointed. The company’s management provided weaker profit expectations and did not give sufficient clarity about its long-term AI strategy. This uncertainty caused the stock to fall sharply, losing nearly 7.4% in after-hours trading following the earnings announcement.
Amazon is still receiving strong backing from Wall Street. Morgan Stanley upgraded Amazon to its best-rated internet stock, citing the company’s leadership in artificial intelligence, cloud infrastructure, and expectations of easing global tariffs.
Other firms, such as Baird, also raised their price targets, highlighting the potential of Project Kuiper. This initiative is expected to create new opportunities in satellite internet, orbital data centers, and robotics integration, which could extend Amazon’s reach beyond its traditional businesses.
Amazon is also planning record levels of research and development spending, with more than $75 billion earmarked for 2025. These investments are heavily focused on AI, cloud infrastructure, and new hardware projects. The company’s advertising division is also evolving with new attribution models designed to help clients measure the effectiveness of campaigns across multiple platforms, further boosting ad revenues.
Also Read: Amazon AI Milestone: How Could This Impact Its Stock?
Despite the positive outlook, Amazon faces several challenges. Some analysts remain concerned about the slower-than-expected growth of AWS compared to competitors like Microsoft and Google Cloud. Questions over whether Amazon’s AI investments can deliver meaningful financial returns in the near future also linger.
Macroeconomic risks remain a factor, particularly with tariffs that could impact consumer pricing in e-commerce and customer budgets for cloud services. Broader concerns around the technology sector also apply to Amazon, as valuations for major tech firms are at elevated levels. Any correction in the “Magnificent Seven” group of large-cap technology stocks could weigh on Amazon’s share price.
The company also continues to deal with criticism related to labor practices, union relations, and environmental issues. These issues may not have an immediate effect on stock price, but they carry the risk of reputational damage and increased regulatory scrutiny in the long run.
Amazon remains one of the most dominant players in both e-commerce and cloud services. It controls around 38% of the US online retail market and has consistently generated most of its operating profits from AWS since 2014. Projects like Kuiper and hardware innovations from Lab126 expand the company’s scope, giving it more diverse sources of revenue.
Advertising is becoming an increasingly important business line, with improvements in attribution models allowing brands to allocate marketing budgets more effectively. Combined with Prime subscriptions, logistics innovations, and AI-driven initiatives, Amazon’s ecosystem continues to grow in both scale and influence.
The future of Amazon stock today appears optimistic, but with clear risks. The base case aligns with analyst consensus, targeting a price between $260 and $270 in the medium term. If artificial intelligence and satellite initiatives deliver as expected, the stock could climb higher, with bullish projections of $300 to $350. More cautious models point to only modest returns in the near term, with limited upside given valuation concerns.
Amazon is at an important stage where its ability to turn major investments into profits will decide whether it continues its strong upward trajectory. With decent earnings, expanding growth drivers, and strong analyst support, the stock has maintained investors’ interest while some others choose to wait for better clarity on guidance and AI projects.
Amazon’s stock is still a trending topic in the market, with supporting factors like e-commerce strength, cloud computing, advertising, and latest projects like satellite internet. The balance between opportunity and risk makes it one of the most closely watched technology equities of 2026.
