Amazon.com, Inc. (NASDAQ:AMZN) is a Should-Watch AI Inventory on Wall Avenue. On October 28, UBS reiterated the inventory as “Purchase” and raised its value goal to $279.00 from $271.00 on the inventory forward of earnings on Thursday. The agency believes that Amazon is poised for one more robust quarter.
“We increase our value goal to $279 from $271 as we roll ahead our valuation parameters by one quarter.”
In response to the agency, there could also be “some noise” in Amazon’s reported third-quarter working earnings, and its headline steerage for OI could also be under consensus.
The agency believes that focus will most likely be on the reported AWS development fee. Expectations are at 18% y-o-y with a chance for larger acceleration shifting into 4Q25 and 2026.
Furthermore, analyst Stephen Ju sees the potential for upside for many of Amazon’s enterprise segments.
“Total, we proceed to see the potential for upside throughout Amazon’s enterprise segments together with e-commerce, cloud, promoting, and Kuiper / low earth orbit satellites,” the analyst wrote. “And whereas we get larger visibility into when these advantages may arrive, notably on Kuiper, the general uplift has but to materialize.”
In response to Ju, Amazon’s relative underperformance this yr has opened up a superb shopping for alternative.
“In our view, with AMZN shares in any other case having languished at +4% YTD (relative to its Web megacap friends) and with a lot of the advantages of its investments / CapEx throughout all of e-commerce, AWS, content material / promoting, and lastly Kuiper nonetheless to be realized, it stays a coiled spring. Due to this fact as income begins to point out up extra meaningfully, the following upward revisions to working revenue and FCF {dollars} ought to arrive at a larger magnitude vs its friends.”
Amazon.com Inc. (AMZN) is an American expertise firm providing e-commerce, cloud computing, and different companies, together with digital streaming and synthetic intelligence options.
Whereas we acknowledge the potential of AMZN as an funding, we consider sure AI shares supply larger upside potential and carry much less draw back threat. In case you’re in search of a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.
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Disclosure: None.
