E-commerce Giant Sees Boost in Price Target Amid Strong Consumer Spending
A leading analyst has raised the price target for Amazon’s stock, citing robust consumer spending and promising signs for the company’s cloud business. The revised target of $265 per share reflects the firm’s confidence in Amazon’s ability to meet revenue estimates for the third quarter.
According to Truist analyst Youssef Squali, Amazon’s North American revenue is tracking closely to consensus estimates, driven by sustained growth in advertising revenue, faster expansion at AWS, and higher operating margins year-over-year. The company’s investments in artificial intelligence, cloud infrastructure, logistics, and Project Kuiper are also expected to pay off in the long run.
Amazon’s stock has formed a consolidation pattern with a buy point of $201.20, indicating a potential return to its early July highs. The company is set to report its third-quarter earnings in late October, with analysts projecting a 9.9% increase in revenue to $157.2 billion.
Squali believes Amazon is well-positioned to gain market share in global e-commerce and improve its value proposition to both merchants and consumers. The company’s cloud, AI, digital ads, and global logistics capabilities make it an attractive investment opportunity.
Despite concerns over consumer spending habits and the impact of Project Kuiper on North American margins, Truist analysts remain bullish on Amazon’s prospects. With its recent rebound above its 200-day and 50-day moving averages, Amazon stock is poised for further growth.
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