Amazon Stock Target Set at $300 on ‘Holiday Cheer’ Optimism

Amazon.com Inc. (AMZN) is seeing increased bullish sentiment, with several firms setting or reiterating price targets at $300, suggesting a positive outlook bolstered by strong performance and strategic growth initiatives. The stock is currently trading at $227.92, with the Street's targets representing a significant potential upside of 31% from here.

The retail sector, which has faced challenges, is experiencing a perceived uplift from the holiday season, contributing to optimism surrounding Amazon's near-term prospects.

Guggenheim are the latest to have initiated coverage with a Buy rating and a $300 price target, indicating confidence in the company's ability to maintain or exceed gross margin peaks across many of its operational segments. 

Elsewhere on Wall St

Morgan Stanley  raised its price target to $315 following better-than-expected third-quarter results and guidance, particularly noting the acceleration of AWS growth to 20% year-over-year. The firm maintained an Overweight rating, with the firm also identifying AMZN it as a “top pick” and suggesting a bull case price target of $350.

HSBC also raised its price target on Amazon's stock to $300, maintaining a Buy rating after the company's seven-year, $38 billion agreement between AWS and OpenAI. The agreement underscores the importance of AWS's substantial infrastructure investments, including the addition of 3.8GW of capacity in the past 12 months.

Piper Sandler and BMO Capital both raised their price targets to $300, following strong third-quarter results. AWS accelerated to 20% year-over-year growth, with meaningful power capacity coming online, and is set to double again by 2027. BMO Capital highlighted the 300 basis point sequential acceleration in AWS growth, marking its fastest pace since Q4 2022. The firm also noted a 22% year-over-year growth in Amazon's advertising business and effective partnerships enhancing its demand-side platform.

TD Cowen increased its price target to $300, noting that Amazon's third-quarter revenue exceeded consensus estimates, with outperformance across North America, International, AWS, and Advertising segments. AWS revenue grew 20.2% year-over-year, with its backlog expanding to $200 billion. Canaccord Genuity also adjusted its price target to $300, expressing confidence in Amazon's future performance, aligning with other recent adjustments by various brokerage firms.

Mizuho raised its price target to $315, citing stronger quarterly results, positive commentary on Amazon's Trainium chips, and the OpenAI deal as factors strengthening confidence in AWS's long-term growth prospects. Cantor Fitzgerald also increased its price target to $315, citing Amazon's third-quarter results, which exceeded estimates, and the company's strong guidance for the fourth quarter.

Oppenheimer increased its price target for Amazon to $305, highlighting AWS's plans to double its capacity through 2027, projecting significant upside to consensus estimates for AWS revenue in 2026 and 2027. Goldman Sachs raised its price target to $275, reflecting renewed confidence in Amazon's growth potential and market positioning.

However, Citizens maintained its Market Outperform rating and $300 price target, expressing uncertainty about Amazon's ability to scale its grocery business profitably, despite previous efforts to improve margins. Citizens noted that grocery represents a significant category but raised concerns about awareness of Amazon's grocery offerings.

AMZN – The Look In Short

The prevailing sentiment suggests the markets are pricing in continued growth and expansion for Amazon, particularly within its AWS division, despite some reservations regarding the grocery sector.

The series of price target increases underscores a strong bullish sentiment, with many of those at, or around the $300 level. Whether this optimism will sustain through the coming year remains to be seen, but the current Wall St expectation is pointing to a bullish year for Amazon's stock.