Amazon ( (AMZN) ) has been popular among investors this week. Here is a recap of the key news on this stock.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Amazon stock has swung in recent weeks as investors debate heavy AI spending against the pace of cloud and retail growth, but Wall Street remains firmly optimistic. The shares are up about 3.5% year-to-date, and top analysts tracked by TipRanks assign Amazon a Strong Buy rating, with average 12‑month price targets around $296–$297, implying roughly 30% upside from current levels. BMO’s Brian Pitz and BofA’s Justin Post both boosted or reaffirmed bullish targets above $300, citing accelerating demand at Amazon Web Services (AWS), the rise of AI “agents” that create new cloud workloads, and potential benefits from Amazon’s reported talks to invest over $10 billion in OpenAI, which could steer more AI traffic onto AWS and showcase the company’s in‑house Trainium chips.
Beyond cloud and AI software, Amazon is increasingly seen as a robotics and logistics powerhouse. The company now runs more than one million robots in its fulfillment network, is rolling out dense same‑day delivery hubs in cities, and is expanding Prime Air drone delivery, with a goal of 500 million drone drops annually by 2030. These investments are already trimming costs: the average distance packages travel is falling, handling steps per unit are down, and fulfillment expenses have ticked lower as a share of sales despite faster shipping. Analysts, including BofA, estimate automation and drones could eventually save around $16 billion a year, supporting sustained earnings growth that helps justify Amazon’s roughly 31x forward earnings multiple. With a logistics grid that is increasingly difficult for rivals to replicate and strong consensus forecasts for double‑digit profit growth, many on Wall Street see Amazon’s premium valuation as a fair price for a durable competitive moat and long‑term compounding potential.
One side note for investors tracking Amazon’s talent and ecosystem influence: longtime Amazon executive Anand Varadarajan, who oversaw worldwide grocery technology and supply chain operations, has been hired by Starbucks as its next chief technology officer. The move underscores the perceived value of Amazon’s operational expertise and its broader impact across consumer and retail industries, even as the core Amazon business doubles down on AI, cloud, and automation to drive shareholder returns.