(AMZN) stock has fallen 2.0% over the past week, gained 0.8% over the last month, and is down 0.5% over the past 12 months. Despite this relatively flat performance, Wall Street’s analysts are firmly bullish, with a Strong Buy consensus and an average 12‑month price target of $294.45 versus a last closing price of $234.34. That implies meaningful upside potential over the coming year, positioning Amazon as a name many pros see as undervalued relative to its growth drivers.
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One of the most closely watched voices on the stock, Ronald Josey of Citi Research, reiterated his Buy rating on Amazon on January 23, 2026 and set a price target of $320.00. This target sits well above the current average forecast and suggests substantial upside from recent levels. His call supports the broader bullish narrative around Amazon, particularly as investors look beyond short‑term price swings to the company’s earnings power in 2025 and 2026.
Josey’s latest report centers on Amazon Web Services (AWS), where he expects revenue growth to accelerate to 22.5% year‑over‑year in the fourth quarter of 2025, driven by expanding AI partnerships and infrastructure build‑out. He also sees Amazon benefiting from what appears to have been a strong online holiday shopping season, citing third‑party data and Citi credit card trends that indicate the company is continuing to gain “share of wallet” from consumers. Advertising is another pillar of his thesis, with rising demand and improved efficiencies expected to push operating income above the high end of management’s guidance.
Looking ahead to Amazon’s 4Q25 results, Josey highlights five key areas investors should watch: whether AWS growth can keep accelerating; how holiday demand and Amazon’s emerging “Agentic Commerce” strategy shape the retail story for 2026; progress in essentials and grocery as Amazon broadens geographic reach and selection; expansion in advertising as the company builds its “Authenticated Graph” and reaches roughly 90% of authenticated U.S. households; and the trajectory of operating income and 2026 capital‑expenditure plans. He projects total fourth‑quarter revenue of $212.8 billion, up 13.3% year‑over‑year and near the top of Amazon’s guidance range, with operating income of $25.7 billion and a 12.1% margin even after the impact of recent restructuring.
Josey calls Amazon his top pick across the internet sector, citing accelerating AWS revenue, continued gains in consumer wallet share, and margin expansion as the core drivers behind his bullish stance and $320 price target. According to TipRanks metrics, this N‑star analyst ranks 266 out of 11,984, with a success rate of 58.35% and an average return of 19.90% per rating. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.