Analysts across Wall Street remained bullish on Amazon despite it’s somewhat disappointing earnings report with major firms calling for upside ahead because of its underappreciated moves in artificial intelligence. On Thursday night, the e-commerce giant and “Magnificent Seven” member posted a fourth-quarter earnings and revenue beat . Amazon reported earnings of $1.86 per share on revenue of $187.79 billion, surpassing the $1.49 on $187.30 billion in revenue analysts polled by LSEG had expected. On the other hand, the company gave disappointing guidance for its current period, citing “unfavorable” headwinds from foreign exchange rates. Amazon expects sales this quarter to come in between $151 billion to $155.5 billion, below the $158.5 billion average consensus. Shares of Amazon have soared 40% in the past 12 months. The stock was set to open Friday’s trading session nearly 3% lower. AMZN 1Y mountain AMZN 1Y chart Across Wall Street, analysts ultimately emphasized their optimism towards Amazon’s future, although the company’s disappointing guidance resulted in several price target revisions, both upwards and downwards. Wall Street’s price target forecasts for Amazon now imply potential upside ahead ranging from between 7% to 17%. Here’s what specific investment firms had to say about Amazon’s latest earnings report: Goldman Sachs Analyst Eric Sheridan reiterated his overweight rating and raised his price target to $255 from $240, implying potential upside of 7%. “We come away from this earnings report with an increased confidence interval in our medium/long term thesis around Amazon’s key platform drivers (in terms of both revenue compounding and margin trajectory),” Sheridan wrote. Bank of America Analyst Justin Post reiterated his buy rating and raised his price target to $257 from $255, implying potential upside of 8%. “Amazon’s retail business continues to show strong margin improvement with a lower cost to serve, while we continue to see AWS as the best positioned AI service in our coverage group,” Post wrote. Barclays Analyst Ross Sandler reiterated his overweight rating and raised his price target to $265 from $235, implying potential upside of 11%. “The margin pull through is allowing AMZN’s FCF to grow nicely in 2025, standing out from the rest of mega-cap,” Sandler wrote. Evercore ISI Analyst Mark Mahaney reiterated his outperform rating and raised his price target to $270 from $260, implying potential upside of 13%. “AMZN remains one of our top longs … we still see several new growth levers/stock drivers,” Mahaney wrote. JPMorgan Analyst Doug Anmuth reiterated his overweight rating but lowered his price target to $270 from $280, implying potential upside of 13%. “We’re comfortable with AMZN’s 2025 capex outlook of ~$105B given AMZN’s very clear path to AI monetization through AWS & what AMZN frames as the biggest tech shift since the Internet … AMZN remains our best idea,” Anmuth wrote. Citi Analyst Ronald Josey reiterated his buy rating but lowered his price target to $273 from $275, implying potential upside of 14%. “Amazon remains a top-pick on retail strength, AWS GenAI demand, and expanding margins and we’d take advantage of any dislocation in shares,” Josey wrote. Bernstein Analyst Mark Shmulik reiterated his outperform rating but lowered his price target to $275 from $280, implying potential upside of 15%. “A $100B+ 2025 CAPEX guide is also a massive number, and the law of large numbers means that growth rates in advertising and AWS are tougher to come by, while missing a single day like leap year creates a $1.5B sales hole to fill on its own,” Shmulik wrote. Morgan Stanley Analyst Brian Nowak reiterated his overweight rating and price target of $280, implying potential upside of 17%. “We now turn to AMZN, which, in our view, is still the most under-appreciated GenAI winner of our mega-caps,” Nowak wrote. — CNBC’s Michael Bloom contributed to this report.
