Shares of Amazon.com Inc. (NASDAQ:AMZN) gained 12.01% over the past five trading sessions as the e-commerce giant looks to build momentum after reporting Q1 earnings. Despite beating on EPS and revenue by 16.77% and 0.35%, respectively, tempered forward guidance due to President Trump’s tariffs continues to cloud the outlook. However, with the U.S. and China agreeing to a 90-day reduction in tariffs on May 11, the market —  including Amazon — rallied as renewed optimism saw investors rushing back into stocks.

In its recent earnings call, Amazon reported that Q1 revenue growth and an operating income increase. Amazon Ads generated $13.9 billion in revenue alone, representing a 19% year-over-year increase, while AWS grew by 17% year-over-year to an annualized revenue run rate of $117 billion. Still, the stock remains down nearly 15% in 2025, with its one-year gain having been erased in Q1, which now stands at a 0.79% loss.

In early April, Piper Sandler lowered its price target for Amazon to $215 from $265; however, the firm maintained its “Overweight” rating saying it is looking for Q1 revenue of $153B and within the $151B–$155B guidance range. Piper forecasts AWS growth of 17% year-over-year. For Q2, the firm anticipates a guidance range of $157B–$162B and op income guidance of $14B–$18B. Piper lowered its 2025 ads revenue growth by about 1% and online stores and 3P services.

Still, while there can be little doubt about its current financial health, investors and potential investors may be right to wonder whether growth can continue at Amazon’s historic pace, and whether the stock is safe as a long-term holding. Let’s take a look at where the share price could be headed.

Key Points in This Article:

• Amazon is facing substantial headwinds this year, but the stock remains fundamentally sound with a “Strong Buy” rating.
• AWS, AI and ad sales continue to be major drivers for the Magnificent Seven stock.
• If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our “The Next NVIDIA” report. This report breaks down AI stocks with 10x potential and will give you a huge leg up on profiting from this massive sea change.

Why Invest in Amazon?

In the past 20 years, Amazon’s stock is up more than 9,249%. The company has been called one of the most influential economic and cultural forces in the world, and its brand is one of the world’s most valuable. Though the stock tumbled as the COVID-19 pandemic waned and lockdowns ended (along with the broader markets), it has more than recovered.

Shares of this Magnificent Seven member hit an all-time high on Feb. 4, 2025, but with the Nasdaq entering a bear market in March, it had been downhill for Amazon in 2025. Still, it is hard to imagine that the company or its share price will collapse any time soon, but analysts and investors may see the stock as overbought. Let’s see what Wall Street expects.

Amazon as a Company

The company engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores internationally. It also manufactures and sells electronic devices and develops and produces media content. Amazon Web Services (AWS) provides compute, storage, database, analytics, machine learning, and other services. And Amazon Prime is the company’s membership program.

Amazon is based in Seattle. It was founded in 1994 by Jeff Bezos, the former chief executive officer and now executive board chair. Amazon went public in May 1997. Its retail competitors include Alibaba Group Holding Ltd. (NYSE:BABA), Kroger Co. (NYSE:KR) and Walmart Inc. (NYSE:WMT). It also competes with the likes of Netflix Inc. (NASDAQ:NFLX) and Microsoft Corp. (NASDAQ:MSFT).

The company continues its push into artificial intelligence with an update of its Alexa feature to Alexa+. AWS investments in cloud computing and AI also continue, with the former being the world’s largest cloud services provider and the latter nearing its debut of its “Nova” chatbot, which will compete in price with ChatGPT. Additionally, Amazon has been expanding its same-day delivery services, and its entertainment division has secured the James Bond franchise with the acquisition of MGM Studios. Headwinds include ongoing labor issues. The most recent quarterly results showed strong performance, with AWS as a major growth driver.

Amazon as a Stock

Since hitting its all-time high on Feb. 4, the stock has sunk 14.54%. Note that Wall Street analysts’ $239.90 consensus price target is just shy of Amazon’s all-time high share price seen earlier this year. Of the 47 analysts covering AMZN, all but one assign it a “Buy” rating, with the other assigning it a “Hold” rating. Overall, the stock receives a consensus “Strong Buy” rating.

Loop Capital and Wells Fargo recently reiterated buy-equivalent ratings, and with more than 63% of shares held by institutional investors — including notable stakes from the three largest asset management companies, Vanguard, BlackRock and State Street — the stock is popular among Wall Street’s sell-side firms. Institutional holdings of Amazon have seen net increase with 2,998 position increases versus 2,272 position decreases.

Wall Street expectations for where the stock goes in the next 52 weeks vary. While analysts overall anticipate healthy upside, the lowest price target indicates a decline in the share price. The consensus projection signals strong upside potential for the next 52 weeks, based on strong forward guidance for business segments like AWS and Prime Video’s ad sales, which saw enormous year-over-year increases as the platform now hosts the NFL’s Thursday Night Football programming.

Estimate	Price Target	%Change From Current Price
Low	$195.00	-5.74%
Median	$239.90	15.96%
High	$305.00	47.42%

Amazon does face some headwinds and risks in addition to those mentioned above. Consumers appear to be pulling back on spending due to ongoing inflation, contracting GDP in Q1 and the possibility of a recession in 2025. Over the past month, however, the consumer discretionary sector of the S&P 500 — into which Amazon falls — has performed admirably, posting a 3.51% gain, which represents a stark difference than the sector’s poorest performance among the S&P 500’s 11 sectors throughout Q1 of the year.

While the company dominates in the retail space and is a tech leader, competition in neither category is likely to go away anytime soon. All these things could have a huge impact on profitability. Despite some skeptics, the prospects for Amazon are optimistic overall, especially in the short term. Wall Street’s “Strong Buy” consensus rating and the upside potential far outweigh the downside potential shares of AMZN face.

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