BMO Capital is more confident about the future performance of Amazon, mainly of its cloud business. Amazon Web Services (AWS), by increasing its price target on the company to $270 dollars as its previous price target on Amazon was $233 dollars. The company retained its “Outperform” rating and pointed to the fact that the demand for AWS is likely to increase powerfully in the second half of 2025.
The growing contribution of agentic capabilities of the AI-driven tools to efficiency and performance is one of the reasons why people may be somewhat optimistic. BMO feels that the market has yet to value these and they have the potential of generating improved results for Amazon. Amazon also has a good financial status and as of the current position it has a market value of a trillion two hundred and twenty billion dollars and it has a stable 10.08% increase in revenue over one year. Recent revisions in AWS estimates by BMO and high expectations of consumer spending and cloud-based services are an indicator that Amazon is well-placed to gain exposure to tech-related expansion and elevated business requirements related to digital facilities.
Out of AWS, Amazon’s retail business is also performing well. BMO reported a 17% year-on-year growth in same-day delivery coverage. This gain helps to make more frequent purchases and to increase the free cash flow. The significant event of the company, Prime Day, performed well too. Consequently, BMO increased its 2025 Gross Merchandise Value (GMV) prognosis by 130 basis points. Their statistics revealed their GMV rate increased more than ten percent during Prime Day, although average prices were the same even amidst tariffs.
Price increase is also being put up by other analysts. Scotiabank increased its price by 35% to 275, citing the impressive performance of the Prime Day sales. Both Needham and Citi have raised their prices of stocks to $265 with the view that Amazon will do well and AWS will particularly do well. Although lawmakers have some concerns about the security of submarine cables with Amazon, the main business of the company is doing fine.
As the Quarter 2 of the year 2025 earnings report is coming up on July 31, investors are tapping their feet. Amazon is expected to come up with the results which will exceed the expectations once again. In general, there is a favorable assessment of the market and the recent analyst upgrades indicate increasing confidence in the capacity of Amazon, as a company to continue expanding the retail and cloud divisions.
