Shares in Amazon (AMZN) stock are up this week amid a total tech stock rebound. Analysts on Wall Street are bullish, with several raising their AMZN forecasts. The e-commerce giant is heading towards its biggest sale period of the year, featuring Thanksgiving, Black Friday, and Christmas. Hence, Amazon stock is poised to benefit from the year-end spending spree that could drive prices higher.
On Monday, Amazon announced a new $50 billion investment in artificial intelligence in the US. The company said it would invest up to $50B to expand AI and supercomputing capacity for U.S. government customers. This update sent AMZN shares higher, adding to the existing tech stock rally.
Analysts Get Bullish on AMZN Potential
BNP Paribas Exane analysts are placing a green flag on Amazon (AMZN), with Analyst Nick Jones giving his bullish two cents. The 5-star analyst believes AMZN remains well-positioned to benefit from long-term growth across cloud, advertising, and artificial intelligence, with meaningful upside still ahead. He went on to set a $320 price target, which signals about 41% upside from current levels.
Jones said Amazon continues to lead in e-commerce and AWS cloud, and he expects both areas to support steady growth. He noted that AWS remains one of Amazon’s biggest strengths because of its scale, customer reach, and consistent profit. Furthermore, Jones pointed to Amazon’s growing advertising business. In his view, ads still have room to grow, and he expects Amazon to keep gaining share in the digital ad market.
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Another bullish stance on AMZN from Wall Street comes from Brian Pitz, BMO Capital’s Managing Director. He wrote in a note to clients that Amazon stock could ‘outperform’ market expectations. The firm revised the price target for AMZN after a holiday spending survey with 1,000 US respondents. The survey states that 94% of the respondents are planning to shop on the platform. The company’s wide range of network and fast delivery makes it the preferred choice for holiday splurges.
It’s worth noting that $250 could be achieved by Amazon in a matter of weeks, putting it on a bullish path for the new year. Solid Q4 earnings could also send AMZN higher.