Thanks to the size of its business and position in several major and growing industries, such as e-commerce and artificial intelligence (AI), Amazon (NASDAQ: AMZN) has been a highly successful company in 2024 and in the years before.
An early January 2025 rating revision provided by Wolfe Research’s Shweta Khajuria demonstrates the continued faith in the strong performance of AMZN shares and of Jeff Bezos’ company as a whole.
Specifically, Khajuria explained that his firm still considers Amazon stock a ‘top pick,’ when she upgraded the 12-month price target from $250 to $270 – from a 12.76% upside to a 21.79% upside.
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Why Amazon stock remains a ‘top pick’ for 2025
According to the analyst, the bull case for AMZN is threefold. The e-commerce giant is expected to continue growing due to tailwinds from increased automation and efficacy, as well as from rising advertising revenue and continuous international profitability.
Amazon’s foray into technology – particularly through Amazon Web Services (AWS) – and the increasing involvement in cloud computing and the AI boom are expected to provide additional room for expansion.
Finally, the e-commerce giant is forecasted to continue its market share consolidation due to the development of methods such as drone deliveries, which are accelerating delivery speeds despite reportedly being very unprofitable for the company at their current stage.
Wall Street remains enamoured by AMZN shares
Wolfe Research’s assessment falls in line with a broader bullishness evident among Wall Street analysts. For example, JPMorgan (NYSE: JPM) noted that Amazon has continued growing in 2024, despite the figures toward the end of the year not being as strong as was hoped, and outlined the expectation the positive trend will persist.
AWS and the ongoing AI boom were also cited as major reasons for optimism.
Jefferies and Bernstein were no less positive when laying out their expectations for Amazon’s margin growth and expansion stemming from the growing demand for cloud computing and artificial intelligence products and services.
Amazon stock’s historical performance indicates strong upward momentum
Analyst optimism appears well rooted in history as AMZN stock has been a strong performer in recent months. With their press time price of $221.70, Amazon shares are 53.35% in the green in the last 12 months.
As could be expected, the e-commerce and technology giant gave its investors much to celebrate, as even a $1,000 investment made as late as the start of 2024 would have generated a $474 profit by the start of 2025.
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