The previous 30 days brought a favorable gain to Amazon’s (NASDAQ: AMZN) stock as it tested the long-awaited $200 threshold. Wall Street analysts are optimistic about this e-commerce giant’s expanding prospect and its involvement in the ongoing artificial intelligence (AI) revolution.
Pre-market gains of 0.66% will help AMZN stock open the July 11 trading session positively at $199.88 after suffering a decline of 0.16% in the previous five days.
Short-term prospects send mixed signals regarding the potential movement of AMZN stock price, while analysts believe 2025 might be a breakout for this e-commerce stock.
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Amazon looks set to carry on with its strong growth in the upcoming quarter
On July 10, TD Cowen reaffirmed its confidence in Amazon stock by raising the price target to $245 from $225 and maintaining a “buy” rating.
The firm expects a strong performance in Q2 2024, projecting revenues of $150.2 billion, an 11.8% increase year-over-year, driven by significant growth in Amazon Web Services (AWS) and advertising revenues, anticipated to rise by 16.6% and 22.0% year-over-year, respectively.
Additionally, TD Cowen forecasts a substantial 98% year-over-year increase in operating income to $15.2 billion for the second quarter, 20% above the consensus.
This projection is based on rising gross profits, improved operational efficiencies, and benefits from extended server lifespans.
Amazon Prime Day could act as a positive catalyst for AMZN stock price
MKM analyst Rohit Kulkarni shared insights from conversations with an experienced e-commerce veteran on July 9, maintaining a “buy” rating and a $210 price target for Amazon.
The e-commerce expert is optimistic about Amazon’s Prime Day growth this year, predicting an acceleration compared to 2023.
Last year, U.S. online sales during Prime Day increased by 6.1% year-over-year to $12.7 billion, with Prime members purchasing over 375 million items worldwide, making it the biggest Prime Day event ever.
The expert expects Prime Day growth of 6% to 9% this year and anticipates double-digit growth across nearly all categories in the second quarter. These positive trends are expected to continue into the second half of the year.
Overall, the sentiment on Wall Street remains overwhelmingly bullish, as all 42 polled experts rated AMZN stock a “buy,” making it a strong buy pick.
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