Amazon (AMZN) has been up and down in 2025 so far, but remains one of the standout tech stocks on the US markets. While the Spring season brought a down spell for AMZN investors, June has proven much more profitable. In the last 30 days, the stock is up 8%, rebounding from a sluggish April and May. As the company continues to dominate the e-commerce sector, one analyst has shared three key factors that could drive the stock even higher.
In a new note to investors, JPMorgan analyst Doug Anmuth called Amazon stock his “best idea.” The analyst cited three under-the-radar advantages that could drive efficiency and margin expansion for Amazon, pumping AMZN investors’ portfolios. The firm reiterated its Overweight rating and set a December 2025 price target of $240 per share, just under its current ATH and implying a more than 20% upside from current levels. According to Anmuth, the following could play a huge roll in AMZN reclaiming $240 and going higher.
What Could Fuel Amazon (AMZN) Stock Surge?
During Amazon’s first quarter, AWS revenue grew 17% while ad revenue rose 19%. JPMorgan notes that Amazon has been quietly restructuring its massive fulfillment network, shifting from a national model to a regional one. This strategy helped Amazon deliver more than 9 billion same-day or next-day packages in 2024, boosting earnings. With this strategy continuing to play out over the course of the future, AMZN shares could get a slight boost.
Beyond its own e-commerce business, Amazon is also opening up its logistics infrastructure to third-party merchants. This logistics-as-a-service model could be a major revenue driver, similar to how AWS became a dominant platform by selling excess server capacity. The company already rivals the size of UPS in last-mile delivery.
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Additionally, AI and automation advancements have been another driver for Amazon’s recent growth. The company is one of the larger-scale investors in artificial intelligence out of the Magnificent-7. CEO Andy Jassy even anticipates that generative artificial intelligence will reduce its corporate workforce in the next few years. This can play one of two ways for Amazon (AMZN) stock. Either 1. investors are fearful of job cuts and pull back on AMZN, or 2. investors remain bullish on AI developments and fuel AMZN stock higher.
Furthermore, Amazon stock may be “primed” for a potential surge driven by overwhelming consumer enthusiasm. A recent survey found that 84% of adults plan to shop on Prime Day 2025. This unprecedented consumer spending commitment creates a perfect catalyst for e-commerce sales growth that could propel Amazon stock to new heights. JPMorgan also notes that Amazon’s next-gen warehouses combine fulfillment, sortation, and last-mile delivery in one location, cutting processing time by up to 25% and lowering peak-season costs, such as Prime week.