Amazon.com Inc. (AMZN) drew fresh attention after Cathie Wood’s ARK Invest ETFs (exchange-traded funds) added to its position in the e-commerce and cloud giant. According to ARK’s trade disclosure dated January 30, the ARK Fintech Innovation ETF (ARKF) bought 8,088 shares of Amazon, worth about $1.93 million. The purchase shows continued confidence in Amazon’s business at a time when investors are closely watching big tech earnings.
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The move comes just days before Amazon reports its Q4 FY25 results on February 5 after market close. Wall Street expects Q4 FY25 earnings of $1.97 per share, up from $1.86 a year ago. Also, revenue is expected to rise 13% year-over-year to around $211.43 billion.
What’s Fueling the Buying Spree?
Momentum around Amazon picked up after the company posted strong third-quarter results. The stock jumped nearly 10% the following day, driven by better-than-expected performance at Amazon Web Services (AWS).
AWS remains the main growth engine. Demand from cloud customers has improved, helped by rising spending on AI tools and core infrastructure. Management said AWS growth is now running at its fastest pace since 2022, as customers lock in capacity and expand workloads.
Also, Wall Street analysts remain optimistic about Amazon heading into Q4. Recently, Wedbush’s five-star analyst Scott Devitt reiterated his Buy rating on the stock and kept a $340 price target, implying roughly 42% upside from current levels. The firm pointed to solid AWS demand, a growing backlog, and more cloud capacity coming online over the next year. Wedbush also said Amazon continues to see healthy trends in its core retail business and steady growth in advertising revenue.
Beyond earnings, Amazon has stayed active on the cost side. In late January, the company confirmed more corporate job cuts, completing a broader plan to reduce headcount. Management said the moves are aimed at cutting layers, speeding up decisions, and improving efficiency. These efforts are focused on boosting cloud demand, improving margins over time, and strengthening Amazon’s long-term position in the AI race.
What Is the Price Target for AMZN Stock?
According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 34 Buys and one Hold assigned in the last three months. At $296.22, the Amazon average share price target implies an upside of 23.8% from the current level.
