Amazon (AMZN) continues to draw strong attention from both investors and Wall Street analysts. Notably, the TipRanks A.I. Analyst has also joined AMZN’s bullish outlook. The combined bullish sentiment is raising expectations for the e-commerce giant’s near-term performance, signaling potential upside for investors.
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For context, TipRanks’ A.I. Stock Analysis provides automated, data-backed evaluations of stocks across key metrics, offering users a clear and concise view of a stock’s potential.
Amazon Earns Outperform Rating
According to TipRanks A.I. Stock Analysis, Amazon earns a strong score of 81 out of 100, along with an Outperform rating. The A.I. analyst has set a price target of $257, suggesting a potential upside of 9%. Wall Street analysts remain bullish as well, forecasting an upside of 12% for the stock. The analysis also points out both positive and negative factors weighing on the company’s stock performance.
Among the positives, Amazon’s high stock score comes from strong Q2 financial results released last month. For context, Amazon’s net sales grew 13% year-over-year to $167.7 billion, surpassing Wall Street’s estimate of $162.2 billion.
Importantly, Amazon’s revenue growth is being fueled by strong performances in AWS and Amazon Ads, with AWS up 17% year-over-year and Ads up 19%. This reflects the company’s focus on AI innovation and faster delivery. Despite challenges like tariffs and inventory issues, Amazon’s efficient operations and regional fulfillment network help reduce risks and support strong financial results. Below is the screenshot for reference.
On the other hand, Amazon faces pressure from declining AWS margins, which hit a six-quarter low due to heavy AI investments. The company is also losing some online grocery market share to competitors, driven by price and convenience factors.
Wall Street Also Stays Bullish on AMZN Stock
Following its Q2 results, several top-rated analysts have reiterated their Buy ratings on AMZN stock. Overall, analysts remain optimistic on Amazon, citing strong growth in AWS and Amazon Ads, innovation in AI, and a diversified business model beyond retail. Analysts expect continued revenue expansion and see upside potential for the stock.
Notably, five-star-rated analyst Brian Nowak at Morgan Stanley, who has a Buy rating on AMZN stock, expects AWS growth to exceed 20% in 2026. He bases this on planned capacity expansions and increasing demand.
What Is the Price Target for AMZN Stock?
According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 44 Buys and one Hold assigned in the last three months. At $263.95, the Amazon average share price target implies an upside of 12% from the current level.
