Amazon (AMZN) stock is down in the last 24 hours despite its latest earnings report beating expectations. In Q2 2025, Amazon reported $167.7 billion in revenue and $18.2 billion in net income, showcasing strong year-over-year growth despite slowing revenue growth. However, despite a strong Q2 performance, concerns over AWS growth and macroeconomic factors have led to an 8% drop in shares post-earnings.
Amazon‘s Q3 earnings were revealed Thursday evening and showed mixed results. The company’s revenue was up 13% from the year before and also beat Wall Street’s $162.19 billion estimate. However, Amazon centered the Amazon Q3 profit warning on operating income guidance of $15.5-$20.5 billion for Q3, and this fell short of the $19.5 billion consensus. The Amazon Q3 earnings disappointment ended up sending shares tumbling in extended trading.
Analysts Mantain Positive Price Forecasts for Amazon AMZN Shares
Despite the dip, numerous analysts are suggesting that now is a great time to invest in Amazon (AMZN). Stock forecasts for AMZN remain high, and experts from different firms are looking to buy the dip. JPMorgan analysts said they “would buy the pullback,” as Amazon shares have tumbled more than 8% in the last 48 hours. Amazon Web Services is a likely culprit for the stock slump, JPMorgan says. The cloud division’s revenue growth, while in line with analysts’ expectations, didn’t accelerate from the previous quarter
Despite that, the bank raised its price target to $265 from $255, implying 23% upside. Other analysts maintain a positive outlook, with price targets ranging from $248 to $297, suggesting potential upside from the current market price of $213. Analysts at UBS, which maintained a price target of $271, said investors shouldn’t be too worried about growing capex. “To sell the stock is to believe that management and the board are making the economically irrational decision, in our view, to invest an increasing amount of capital,” UBS wrote.
Citi also raised its price target to $270, arguing that the increase in investment “highlights continued demand strength as AWS alleviates its infrastructure capacity constraints.” Furthermore, Wedbush reiterated its Outperform rating with a $250 price target. With all the optimism from key analysts despite the dip, Amazon AMZN stock remains a top choice and may rebound in the short term.