Amazon (AMZN) stock has risen 4.2% over the past month and 2.3% over the past year, though it slipped 0.7% in the last week. Wall Street’s analysts are firmly bullish, with a Strong Buy consensus and a 12‑month average price target of $297.21 versus the last closing price of $242.96. That target implies meaningful upside over the coming year as investors focus on Amazon’s cloud momentum, growing ad business, and continued investment in AI and logistics.
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One of the key voices backing Amazon is Brian Pitz of BMO Capital Markets, who reiterated his Buy rating on February 2, 2026 and set a price target of $304.00. His target points to solid upside from current levels, reflecting confidence in both Amazon Web Services (AWS) and the company’s expanding advertising platform. Pitz is a well-regarded stock picker, ranking 265 out of 11,984 analysts on TipRanks, with a success rate of about 69.3% and an average return of 16.7% per rating.
In his latest report, Pitz argues that accelerating cloud demand and a resilient U.S. consumer are aligning for a robust fourth quarter of 2025. He sees AWS revenue growth accelerating to 21% year over year (excluding currency effects) in 4Q25, with another 5‑percentage‑point boost into the first half of 2026 as legacy cloud demand stays strong and AI‑related workloads expand. While he notes that competition and capacity constraints may cap the upside, he still expects AWS to lead the foundational and middle layers of the generative AI and machine learning stack, benefiting from powerful long‑term cloud tailwinds.
On the retail side, Pitz highlights surprisingly resilient U.S. holiday sales despite weakening consumer confidence through most of 2025. Third‑party data indicate mid‑single‑digit growth for total and e‑commerce holiday retail sales, slightly slower than 2024 but better than initially expected. That strength supports his current 4Q25 revenue and operating income forecasts, which run slightly ahead of Wall Street consensus. However, he remains cautious about 2026, flagging that the broader macro environment may be increasingly supported mainly by higher‑income consumers.
Advertising is another bright spot in the Amazon story. According to Pitz, Amazon has been rapidly scaling its ad offerings in 2025, helped by strong store traffic during the holidays, a rising share of third‑party sellers, and new partnerships with platforms like Roku, Netflix, Spotify, and SiriusXM. He expects advertising to again outpace all other segments in 4Q25. At the same time, he forecasts a continued ramp in capital spending, driven by AI‑related infrastructure tied to the NVIDIA chip cycle and the rollout of lower‑cost Same‑Day buildings aimed at improving customer experience and unlocking additional retail profitability. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.