Ahead of Amazon’s (AMZN) upcoming Q1 earnings release, Wall Street analysts have taken a more cautious stance, cutting their earnings estimates and price targets for the tech giant. The downgrades are largely driven by weakening consumer demand and ongoing macroeconomic headwinds.
Wedbush Turns Cautious on Amazon over Macro Concerns
Wedbush’s five-star-rated analyst Scott Devitt lowered the firm’s price target for Amazon from $280 to $225 and trimmed Q1 net income estimates by approximately 3%.
Additionally, Wedbush reduced its 2025 revenue forecasts by 2%–6% and EBITDA/operating income by 5%–10%. Wedbush also pointed the current situation as “dense fog,” and stated that it may update its estimates again after hearing from company executives in the coming weeks for better clarity.
Having said that, Devitt’s revised price target suggests an upside of over 25% from current levels. So far this year, AMZN shares have dropped 18%, largely due to concerns over tariffs and their potential impact on the company’s vast global supply chain.
Wedbush Isn’t the Only One
Earlier this month, TD Cowen also trimmed its estimates, citing broader macroeconomic concerns. The firm lowered its revenue, operating income, and earnings projections by around 1% for 2025 and cut its 2026–2030 estimates by 3–4%, reflecting softer consumer spending amid higher-than-expected tariffs and other headwinds.
At the same time, Cowen’s top-rated analyst, John Blackledge, reduced his price target on AMZN stock from $255 to $240 while maintaining a Buy rating. Similarly, Morgan Stanley’s Brian Nowak lowered his price target by 10%, bringing it down to $245.
Is Amazon a Buy, Sell, or Hold?
Despite the short-term headwinds, Wall Street analysts maintain a highly bullish stance on AMZN stock. According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 45 Buys and one Hold assigned in the last three months. At $256.19, the Amazon average share price target implies an upside of 42.6% from the current level.
