Amazon ( (AMZN) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Amazon’s recent AWS re:Invent conference has sparked renewed optimism among analysts regarding the company’s growth prospects, particularly in the realm of artificial intelligence (AI). Key announcements at the event, such as the introduction of new Nova GenAI models and advanced AI features, have reinforced the bullish sentiment. Analysts from TD Cowen, Goldman Sachs, and KeyBanc have all reiterated their Buy ratings on Amazon stock, citing AWS’s potential to capitalize on the AI boom and drive significant revenue growth. AWS is expected to see a compound annual growth rate (CAGR) of 22% from 2025 to 2030, with revenue potentially reaching $348.5 billion by the end of the decade.
In addition to AWS, Amazon’s advertising segment has emerged as a significant profit driver, with revenue rising 23.5% year-over-year in Q3. This growth is supported by enhancements in Amazon’s demand-side platform and AI-driven shopping tools. Despite Amazon’s stock showing only modest gains this year, analysts believe it remains undervalued compared to its historical valuation ranges. With the stock trading below its historical averages, the market may be underestimating Amazon’s earnings potential as AWS and advertising continue to expand. Analysts maintain a Strong Buy consensus on Amazon stock, with an average price target suggesting nearly 30% upside potential.