Shares of Amazon.com Inc. (NASDAQ:AMZN) gained 4.12% over the past five trading sessions, increasing its one-month gain to 10.62% and reducing its year-to-date gain to 3.02%. Over the past year, the stock is up 14.17%.
At the beginning of June, Bank of America raised the its price target on Amazon.com to $248 from $230, maintaining its “Buy” rating, citing recent Software-as-a-Service and retail sector multiple expansion. Amazon now has over 750,000 robots assisting with 75% of customer orders, but with AI capabilities ramping up, its first twelfth generation automated fulfillment center launched in late-2024 and eight new robots — just announced in May — are primarily focused on delivery station efficiencies. The robotics cycle is “early,” according to Bank of America’s analyst, who expects Amazon to leverage robots to reduce labor dependency, increase order accuracy and improve warehouse efficiency, driving material cost savings.
In its recent earnings call, Amazon reported that Q1 revenue growth and an operating income increase. Amazon Ads generated $13.9 billion in revenue alone, representing a 19% year-over-year increase, while AWS grew by 17% year-over-year to an annualized revenue run rate of $117 billion. Still, the stock remains down nearly 15% from its all-time high on Feb. 4, with its one-year gain now standing at 15.87%.
Still, while there can be little doubt about its current financial health, investors and potential investors may be right to wonder whether growth can continue at Amazon’s historic pace, and whether the stock is safe as a long-term holding. Let’s take a look at where the share price could be headed.
Key Points in This Article:
- Amazon is facing substantial headwinds this year, but the stock remains fundamentally sound with a “Strong Buy” rating.
- AWS, AI and ad sales continue to be major drivers for the Magnificent Seven stock.
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Why Invest in Amazon?
In the past 20 years, Amazon’s stock is up more than 9,188%. The company has been called one of the most influential economic and cultural forces in the world, and its brand is one of the world’s most valuable. Though the stock tumbled as the COVID-19 pandemic waned and lockdowns ended (along with the broader markets), it has more than recovered.
Shares of this Magnificent Seven member hit an all-time high on Feb. 4, 2025, but with the Nasdaq briefly entering bear market territory in March, it had been downhill for Amazon in 2025. There have been signs of hope recently, with AMZN rebounding along with the broad market. It is hard to imagine that the company or its share price will collapse any time soon, but analysts and investors may see the stock as overbought. Let’s see what Wall Street expects.
Amazon as a Company
The company engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores internationally. It also manufactures and sells electronic devices and develops and produces media content. Amazon Web Services (AWS) provides compute, storage, database, analytics, machine learning, and other services. And Amazon Prime is the company’s membership program.
Amazon is based in Seattle. It was founded in 1994 by Jeff Bezos, the former chief executive officer and now executive board chair. Amazon went public in May 1997. Its retail competitors include Alibaba Group Holding Ltd. (NYSE:BABA), Kroger Co. (NYSE:KR) and Walmart Inc. (NYSE:WMT). It also competes with the likes of Netflix Inc. (NASDAQ:NFLX) and Microsoft Corp. (NASDAQ:MSFT).
The company continues its push into artificial intelligence with an update of its Alexa feature to Alexa+. AWS investments in cloud computing and AI also continue, with the former being the world’s largest cloud services provider and the latter nearing its debut of its “Nova” chatbot, which will compete in price with ChatGPT. Additionally, Amazon has been expanding its same-day delivery services, and its entertainment division has secured the James Bond franchise with the acquisition of MGM Studios. Headwinds include ongoing labor issues. The most recent quarterly results showed strong performance, with AWS as a major growth driver.
Amazon as a Stock
Since hitting its all-time high on Feb. 4, the stock has sunk 11.77%. Note that Wall Street analysts’ median price target of $241.64 is just shy of Amazon’s all-time high share price seen earlier this year. Of the 48 analysts covering AMZN, all but one assign it a “Buy” rating, with the other assigning it a “Hold” rating. Overall, the stock receives a consensus “Strong Buy” rating.
Loop Capital and Wells Fargo recently reiterated buy-equivalent ratings, and with 64.03% of shares held by institutional investors — including notable stakes from the three largest asset management companies, Vanguard, BlackRock and State Street — the stock is popular among Wall Street’s sell-side firms. Institutional holdings of Amazon have seen net increase with 2,930 position increases versus 2,433 position decreases.
Wall Street expectations for where the stock goes in the next 52 weeks vary. While analysts overall anticipate healthy upside, the lowest price target indicates a decline in the share price. The consensus projection signals strong upside potential for the next 52 weeks, based on strong forward guidance for business segments like AWS and Prime Video’s ad sales, which saw enormous year-over-year increases as the platform now hosts the NFL’s Thursday Night Football programming.
| Estimate | Price Target | %Change From Current Price |
| Low | $195.00 | -8.69% |
| Median | $240.62 | 13.14% |
| High | $305.00 | 42.81% |
Amazon does face some headwinds and risks in addition to those mentioned above. Consumer spending has rebounded in the wake of Trump’s tariff threats and subsequent pauses, which could help GDP in Q2 after it contracted GDP in Q1, raising the risks of a possible recession in 2025. Over the past month, however, the consumer discretionary sector of the S&P 500 — into which Amazon falls — has performed third best, posting a gain of 8.38%, trailing only industrials (8.84%) and technology (9.97%).
While the company dominates in the retail space and is a tech leader, competition in neither category is likely to go away anytime soon. All these things could have a huge impact on profitability. Despite some skeptics, the prospects for Amazon are optimistic overall, especially in the short term. Wall Street’s “Strong Buy” consensus rating and the upside potential far outweigh the downside potential shares of AMZN face.
The post Amazon (NASDAQ: AMZN) Stock Price Prediction for 2025: Where Will It Be in 1 Year appeared first on 24/7 Wall St..
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Author: Joel South
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