Ai and the cloud in focus for Wall Street while analysts are bullish prior to income

Deutsche Bank has a price target of $ 275 on Amazon, almost 17% higher than the current level.

According to Wedbush Securities, the profit of the shopping efficiency and a strong American holiday season has set Amazon on course for a year of meaningful margin extension.

The investment company expects Amazon to deliver $ 20.7 billion to business income in the fourth quarter, 9% above consensus estimates. This figure would mean that the company surpassed the initial income expectations of 2024 by more than 40%, expects a performance wedbush to repeat Amazon.

“Although the bar is higher this year, we think that Amazon again exceeds expectations in 2025, and our estimate of the business income is 5% above consensus,” said a team led by analyst Scott Devitt.

Wedbush is not worried about observed headwind that investors have “exaggerated conservatively” on the margin potential of Amazon, such as rising costs behind the satellite and AI initiatives of the company. Instead, retail power, fulfillment optimization and AWS will drive the e-commerce giant to more profit with a higher margins and advertising income.

Wedbush maintains an “outperform” rating on Amazon. It increased its price target to $ 280, which implies a profit of almost 19% compared to the current levels.

Amazon places Robotics centrally in its warehouse company, an advantage that investors may be undervalued, according to research analyst Brian Nowak.

“Amazon now has industrial robots that can increase efficiency in storage, inventory management, pick/pack, sort and outgoing phases of the order fill fillment process,” he wrote. “Given that the implementation costs of almost 20% of retail income (where work is estimated ~ 60% of the implementation costs), automation can have a significant effect on the EBIT potential in the long term.”

This is a positive positive in the long term that could unlock $ 10 billion in savings for the company by 2030, if 30% to 40% of Amazon’s American units are maintained by Robotics-compatible warehouses.

Morgan Stanley has a “overweight” rating on Amazon and a price target of $ 280, with an almost 19% advantage of the current levels.

Improving the growth of the advertisement In the fourth quarter, Mizuho analysts convinced that consumer spending is normalizing, a macro-positive for the e-commerce giant. Price improvements for both staples and discretionary products indicate a healthier consumer environment.

“In general, we believe that risk/reward is favorable for Amzn in the print because of (1) AWS Outperformance; (2) Expansion for retail margin; and (3) Capital efficiency of mixers’ shift to adapted ASICs,” said the investment company.

Mizuho has an “outperform” rating on Amazon shares and has a price target of $ 285, 20% higher than the current level.

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