JPMorgan Hikes the Price Target on Amazon Stock (AMZN) on Cloud and Retail Strength

Amazon.com (AMZN) stock forecast received a boost from JPMorgan’s price target hike. Analyst Doug Anmuth of JPMorgan lifted the price target on AMZN stock to $240 from $225 today, while maintaining his “Buy” rating. The revised price target implies a 17% upside potential from current levels.

It is worth noting that Anmuth ranks 45 out of more than 9,596 analysts tracked by TipRanks. He has a success rate of 64%, with an average return per rating of 21.4% over a one-year timeframe.

JPMorgan’s Views on Amazon Stock

The five-star analyst highlighted Amazon’s strong position across both of its main businesses—e-commerce and cloud computing. He pointed out that both markets remain under-penetrated and so have plenty of room to grow. For instance, in the U.S., e-commerce makes up only about 20% of adjusted retail sales, leaving enough room for Amazon to scale further in its online retail operations.

He also highlighted Amazon’s strategic flexibility in retail, noting that the company can adjust its mix of first-party and third-party inventory based on market conditions. At the same time, the analyst pointed out that Prime membership remained a major strength, helping Amazon drive repeat purchases and long-term customer loyalty.

On the cloud side, the analyst remained confident about the growth potential of the company’s AWS (Amazon Web Services) cloud business, driven by a continued shift to the cloud and robust AI (artificial intelligence) tailwinds. The analyst highlighted AWS’s “multi-year head start,” which has helped it reach roughly 31% global market share. As more companies move to the cloud and invest in AI tools, the analyst anticipates that AWS will continue to remain a major contributor to Amazon’s overall performance.

Anmuth also focused on the company’s advertising business, noting that both AWS and Advertising remained the company’s “most profitable” segments. It should be noted that over the years, Amazon has grown its online advertising arm into the third-largest digital ad platform globally, trailing only Alphabet (GOOGL) and Meta Platforms (META). In the latest Q1 2025 results, Amazon’s advertising revenue came in at $13.92 billion, ahead of the $13.74 billion expected. Meanwhile, AWS generated $29.30 billion in revenue, just shy of Wall Street’s forecast of $29.42 billion.

Is Amazon a Good Stock to Buy?

According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 47 Buys and one Hold assigned in the last three months. At $241.29, the average Amazon share price target implies an upside of 17.3% from the current level.

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