October 5, 2024

Amazon Bull Calls Grow as Wolfe Sees Big Upside for Stock

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Amazon Bull Calls Grow as Wolfe Sees Big Upside for Stock

Key Takeaways

  • Wolfe Research analysts initiated coverage of Amazon’s stock with an “outperform” rating and a price target that calls for a roughly 30% rise.
  • The analysts said they’re watching for margin expansion, Amazon Web Services growth, artificial intelligence initiatives, and spending updates, and highlighted Amazon’s leading position in retail, digital advertising, and cloud computing.
  • Amazon’s shares have already risen more than 25% this year.

Amazon’s ( AMZN ) stock has a new bull, with Wolfe Research analysts calling for a roughly 30% rise in the shares, driven by the company’s leadership position and exposure to growth opportunities.

The analysts gave Amazon an “outperform” rating and a price target of $250, above Visible Alpha’s consensus target near $225. The shares edged higher as of 1:45 p.m. ET Tuesday, rising 0.3% from Monday’s close of $192.72.

Amazon’s stock has gained more than 25% year-to-date, outpacing the S&P 500 index alongside some of its Magnificent 7 peers .

Wolfe Analysts Eye AWS, AI

Wolfe’s analysts said eyes are on margin expansion, Amazon Web Services (AWS) growth, artificial intelligence (AI) , and capital expenditures (CapEx) .

They highlighted the company’s leadership position and differentiated value proposition in three market opportunities of $1 trillion or more: retail, digital advertising, and cloud computing.

They also said that Project Kuiper, Amazon’s satellite broadband network, as well as Amazon Business, its corporate membership option, represent growth opportunities.

Amazon on Tuesday kicked off its annual summer sales event, Prime Day , which runs through tomorrow.

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