Amid the ongoing dominance displayed by the company, analysts have begun to predict that Amazon (AMZN) may be on track to surpass a $240 stock price in 2025. Indeed, the company has proven to be a key player in some of the most popular sectors across Wall Street. That has them in prime position to capitalize throughout the next several months.
The AI and cloud computing sector has been a clear point of emphasis for investors. With Amazon Web Service (AWS) thriving, it could get a massive boost from that alongside its thriving e-commerce business. Altogether, creating an avenue to clear its $201 all-time high.
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Amazon Expected to Beat All-Time High in 2025: But Just How High Can It Go?
The current stock landscape has shown it clearly favors information technology. With Nvidia’s (NVDA) near 200% growth figure throughout 2024, the AI boom has shifted the market greatly. That fact has seen many experts predict big things to come for one of the largest companies on the planet.
With Microsoft (MSFT) and Alphabet (GOOGL) looking to do big things next year, Amazon could be set to outperform them all, with analysts projecting a possible $240 price for AMZN in 2025. Indeed, Mark Mahaney, Evercore ISI’s senior managing director and head of internet research, has stood by the rather optimistic approach.
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In a recent report, Mahaney noted that AWS is “a high-margin business” with a “large” addressable market. “Two years ago, the narrative was they were losing share to Microsoft. If that narrative changes and it would change if they continue to show accelerating revenue growth, I think that takes the stock higher.”
Additionally, Mahaney expects Amazon stock to rise if retail sales growth increases by around 10%. That figure has been consistent and should complement its various other endeavors into things like satellite communication to compete with Elon Musk’s Starlink.
“Investors are going to want to know what’s happening to the core retail market trends,” he added. “If they can show those to be steadily consistently, solidly rising, I think if you put those two or three elements together, the stock goes higher. That’s why it’s one of our top picks.”