Tech giant Amazon (AMZN) is set to release its latest quarterly report next week on May 1. Ahead of the Q1 print, Telsey analyst Joseph Feldman remains optimistic about Amazon’s growth, thanks to strong online demand, cost-saving initiatives, quicker deliveries, and momentum in its cloud business. However, the Top analyst lowered his price target on Amazon to $235 from $275, citing macro and tariff-related concerns.
It is worth noting that Feldman ranks 1,165 out of more than 9,437 analysts tracked by TipRanks. He has a success rate of 51%, with an average return per rating of 5.20% over a one-year timeframe.
Feldman’s Views Ahead of Q1 Print
According to the Top analyst, the e-commerce giant is about to deliver a decent performance. Fueled by stronger online shopping trends, a broader product assortment, faster delivery, and rising demand for Amazon Web Services (AWS) cloud and AI-related offerings, Feldman expects sales to show steady high single-digit growth and “operating income growth of mid-teens” in 1Q25.
In addition, Feldman points out that Amazon’s profits should benefit from growth in higher-margin businesses like advertising, media, and AWS. He also sees continued benefits from the company’s newer, region-based distribution model and its focus on cost savings and productivity.
According to Main Street Data, AWS generated revenue of $28.8 billion in Q4 2024, marking a growth of 19% year-over-year. For the full year also, AWS segment sales climbed 19%, reaching a total of $107.6 billion.
That said, one concern Feldman points to is the uncertainty around tariffs. Amazon has significant exposure to China through both its own retail operations and third-party sellers, many of whom also use Amazon’s services like advertising and fulfillment. Higher tariffs could raise costs and weigh on consumer spending, potentially impacting Amazon’s profitability.
Still, Feldman believes Amazon is well-positioned to keep gaining market share, supported by its loyal Prime member base, strong ties with small businesses, and tech advantage. He also noted that Amazon’s newer segments, such as grocery, pharmacy, fashion, home goods, and Amazon Logistics, among others, should add more value going forward.
Is Amazon Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 45 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $248.35 per share implies 37.51% upside potential.
