Amazon Stock (AMZN) gained plenty of ground in Tuesday’s trading session, climbing 3.18% during trading hours. The company has taken more steps into the AI industry with its AWS platform, riding the AI wave. The S&P 500 index was also up 0.4% today, while the Nasdaq Composite index was up 0.5%. Why is AMZN stock up today? Let’s explore.
Why is AMZN Up On Monday?
Amazon stock rose Tuesday thanks to bullish coverage by finance firm Redburn Atlantic. The firm gave AMZN a “buy” rating, maintaining confidence in the stock’s future performance. Redburn also raised its one-year price target on Amazon stock from $225 per share to $235 per share, a 14% upside.
Redburn’s analysts cited Amazon’s strong market positioning and competitive moats as reasons for raising their price target on the stock. The company’s $4 billion investment in AI startup Anthropic also assisted Amazon’s stock performance. “Together with AWS, we’re laying the technological foundation—from silicon to software—that will power the next generation of AI research and development,” Athropic said in a press release. “By combining Anthropic’s expertise in frontier AI systems with AWS’s world-class infrastructure, we’re building a secure, enterprise-ready platform that gives organizations of all sizes access to the forefront of AI technology.
For Amazon (AMZN), its recent of momentum has many believing it is situated firmly as a buy-now stock. For the 2024 fiscal year, 15 analysts had revised earnings estimates higher over the last 60 days, Yahoo reports. The data shows that the stock is continuing to display an upward trajectory.
With AI driving demand for the company’s cloud infrastructure services, AWS looks poised to contribute a larger share of the company’s overall revenue. In turn, Amazon’s stock profit margins should continue to rise over the long term.