Amazon (AMZN) stock has risen just 1.1% year-to-date due to tariff pressures and slower growth in the AWS (Amazon Web Services) cloud unit compared to rivals. Nonetheless, Wall Street remains bullish on AMZN stock. Notably, top TD Cowen analyst John Blackledge expects Amazon to deliver better-than-expected Q3 results and issue “solid” guidance for the fourth quarter of 2025. Blackledge reiterated a Buy rating on Amazon stock with a price target of $255.
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Currently, Wall Street expects Amazon to report earnings per share (EPS) of $1.56, reflecting 9.1% year-over-year growth. Revenue is estimated to increase by about 12% to $177.7 billion.
TD Cowen Analyst Projects Upbeat Q3 Earnings and Strong Guidance
Blackledge noted that AMZN stock is underperforming the S&P 500 (SPX) and other mega internet companies like Alphabet (GOOGL), Meta Platforms (META), and Netflix (NFLX), mainly due to AWS’ growth lagging its cloud peers, even as its e-commerce and advertising businesses are firing on all cylinders. The 5-star analyst expects this sentiment to turn and projects AWS revenue growth to accelerate in the second half of the year. In fact, Blackledge expects AWS’ revenue growth to accelerate further in 2026 and 2027.
The analyst projects AWS revenue to grow by 18.3% year-over-year in Q3 2025 (compared to 17.5% in Q2), driven by the ramping of generative AI workloads, as the company’s significant AI infrastructure investments begin to alleviate supply constraints. Blackledge is optimistic about AWS and other cloud platforms, with his analysis indicating a 4x increase in generative AI spending over the next three years.
Blackledge highlighted that his Q3 2025 revenue and operating income estimates are about 1% and 9% above the consensus projections, respectively. He expects the Q3 results to be driven by continued growth at the company’s advertising, AWS, and e-commerce divisions.
Moreover, the top-rated analyst expects Amazon to issue a strong Q4 outlook, with his revenue and operating income estimates 1% and 9% above consensus, respectively, as AWS growth accelerates further and advertising growth remains robust. In particular, Blackledge expects AWS’ year-over-year revenue growth to accelerate to 19% in Q4 2025. Meanwhile, the analyst sees continued strength in Amazon’s e-commerce business, driven by record delivery speeds, continued demand for everyday essentials, and rural market expansion.
What Is the Price Target for AMZN Stock?
Overall, Amazon scores Wall Street’s Strong Buy consensus rating based on 43 unanimous Buys. The average AMZN stock price target of $267.88 indicates about 21% upside potential from current levels.
