Cantor Fitzgerald has raised its price target on Amazon to $260 up from earlier $240 with an overweight rating on the stock. The new change signals the company is betting on further expansion of Amazon and this is under its cloud computing arm, Amazon Web Services (AWS). Amazon Stock have so far traded for $226.35 and the company has a market value of $2.4 trillion. Investing Pro indicates that the stock is slightly underpriced thus providing the prospects of upside to investors.
The AWS growth is one of the significant factors that contribute to this upsurge in the price target. In the second quarter of 2025 AWS is to exhibit a 17% year-on-year growth. Such an increase is a good indication of Amazon’s dominance in the market of cloud solutions and a significant profit carrot in general. The company is moreover likely to achieve quarterly sales along with its projected operating income. This indicates good financial health and control of costs on the bigger picture front U.S. non-store retailing sales increased by 7% as compared with the corresponding period last year and this augurs well with the North America retail business of Amazon.
It also experienced good performance in Prime Day, which sold approximately $21.4 billion Gross Merchandise Value, a 60% increase from what it previously did. Such expansion can be attributed to the fact that the event was made to be four days which contributed to boosting the market share of Amazon. Cantor Fitzgerald believes Amazon will provide a good third quarter guidance with revenues of approximately $175 billion and operating income of close to $19 billion. They also increased their operating income for the fiscal year 2026 by 9%. Its new 260 price involves 30 times that estimate.
Although shares of Amazon have struggled in 2019 relative to those of other prominent tech company names, except Tesla. The stock price target has been increased by a number of firms such as Bofa Securities, Piper Sandler, and Morgan Stanley. They are due to the existence of better AWS growth, enhanced margins and a more favorable trade environment.
To conclude, analysts see a promising future for Amazon. As long as the company is available with excellent AWS performance, good trends in retail business, and enhanced proficiency, chances of its further expansion within the following months are rather good.
