With the current technology sector still betting on the ongoing AI and cloud-based computing boom, Amazon AWS projected growth of 20% has AMZN targeting a stock price of $230. Indeed, the Amazon Web Services branch of the company is looking to push the e-commerce juggernaut to new heights.
Amid the ongoing earnings season, investors are looking for insight into how various companies are closing out the 2024 year. For Amazon, this could be monumental for its 2025 plans. A boost to its most important business from an investment perspective could have its stock price set to skyrocket.
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Amazon Gets 20% Growth Projection as Stock Price Target Gets a Boost
Throughout the last year, Wall Street has seen the information technology boom as a sector. Microsoft (MSFT), Nvidia (NVDA), and Apple (APPL) have been thriving. With the AI boom taking hold, companies are searching for new ways to compete with the growing demand.
One that has been as successful as any is Amazon (AMZN), which is projecting a 20% growth rate for its AWS business and an increased price target. Indeed, the Q3 earnings report is projected to be a potential game changer for the stock and its position within the market.
BMO Capital has recently solidified its Outperform rating for the stock. Moreover, they have given it a $230 price target, amid its projected AWS cloud growth. Additionally, it has increased both its fiscal year 2024 and fiscal year 2025 earnings per share projects to $4.53 and $5.30, respectively.
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But could a positive Q3 report have it set to compete with the three dominant stocks previously mentioned? A recent projection from Investors Business Daily has it sitting just below the tech juggernauts. Specifically, it’s been given a market value target of $2.3 trillion in 2025. That would be the S&P 500’s fifth-highest and the largest in communications services.
Nvidia, Microsoft, Apple, and Alphabet (GOOGL) would be the only companies higher. The expectation does make sense, with Amazon looking to boost its cloud usage but not really becoming a mainstay in the AI sector. The top three companies have become key leaders in that area, and should only continue to grow.