Wall Street’s banner year in 2024 lifted a bunch of stocks to record highs — including Amazon (AMZN), which hit a new high of $233 on Dec. 16, 2024. Shares of the online retail giant have since fallen back to around $219 but are still up nearly 45% over the past year.
Most stock and investment experts expect Amazon to keep surging in 2025, though at maybe a slower pace than last year. A recent analysis from Zacks found that of the 50 brokers who make up its average broker recommendation, 46 rate Amazon a “Strong Buy” and three rate it a “Buy.” Only one rates it a “Hold.” These ratings put Amazon firmly in the “bullish” category.
Much of the enthusiasm has to do with Amazon’s continued dominance in the online retail market along with growth in other business units, according to Edward Corona, a Florida-based trader and publisher of The Options Oracle Newsletter.
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“Amazon’s dominance in e-commerce and cloud computing keeps it in a league of its own,” Corona told GOBankingRates.
So considering Amazon’s recent performance, where will its stock go in 2025 — and what will contribute to the stock’s movement?
Also see five stocks to buy if you already own Amazon.
Here are three key drivers of Amazon’s stock performance, according to 24/7 Wall Street.
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E-commerce success: Although e-commerce makes up only about 15% of Amazon’s current retail sales, it’s become an increasingly important growth driver.
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Amazon Web Services: This part of the business is expected to reach $100 billion in total sales this year, although its 13% year-over-year growth lags behind rival cloud services, such as Microsoft’s Azure and Google’s Cloud. As 24/7 Wall Street noted, Amazon runs the risk of falling behind Microsoft before 2030 if it doesn’t stop losing market share.
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Advertising: Advertising has the ability to be “another high-margin business line” for Amazon, according to 24/7 Wall Street.
Investors and analysts will keep a close eye on how the above business units perform. In the meantime, Amazon’s stock price seems poised for continued growth in 2025. Here’s a look at the expected trading range, according to investing experts.
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Anthony Grosso, a New York-based financial strategist and mortgage loan originator, expects Amazon to “outperform” in 2025 and projects that the stock price could reach as high as $280. The main wild cards are how the economy performs and how consumers deal with increasing credit card debt and delinquency rates.
