Top TD Cowen analyst John Blackledge believes Amazon’s (AMZN) advertising business is entering a powerful new phase. After reviewing his firm’s latest U.S. ad buyer survey, he raised his price target on Amazon to $315 from $300 and reiterated a Buy rating. The new price target implies a 30% upside from current levels.
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What the Ad Buyer Survey Showed
According to the survey results, more than 60% of advertisers already using Amazon said they expect to increase spending in 2026, which Blackledge sees as a clear sign that Amazon will gain ad share over time.
The five-star analyst also noted that advertisers are increasingly using Amazon’s data to reach shoppers both on Amazon and across the wider internet. He expects this part of the business to continue taking share from competing ad platforms.
Another factor the analyst highlighted is Prime Video advertising. By adding ads to Prime Video, Amazon is giving brands access to large audiences through video, while keeping them inside Amazon’s ecosystem.
Blackledge also sees artificial intelligence playing an important role in helping advertisers build and run more effective ads. He said GenAI tools are helping advertisers create and optimize ads more easily, leading to better results and supporting higher spending over time.
Putting all of this together, Blackledge estimates Amazon’s advertising revenue can grow from about $68 billion in 2025 to nearly $142 billion by 2030, equal to a 16% yearly growth rate. He also expects Amazon’s share of global digital advertising outside China to rise steadily over that period.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 46 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $295.05 per share implies 21.62% upside potential.
