Amazon Turns Street Favorite As Majority Of Wall Street Expects Stock To Hit $300 Or Above: Dan Ives Sees Huge Inflection Point

• Amazon’s quarterly results on Thursday showcased that its cloud has continued to grow strongly, with Jassy noting on the post-earnings call that the company will further invest in artificial intelligence infrastructure.
• Telsey Advisory Group analyst Joseph Feldman added that Amazon should also benefit from the growth of everyday essentials and newer businesses.
• Bank of America stated that the fourth-quarter outlook suggests "a solid holiday,” and that it has its quarterly operating view to reflect accelerating higher-margin AWS revenue growth, shipping efficiencies, and retail headcount leverage.

Amazon.com (AMZN) became the top-trending ticker on Stocktwits on Friday, with most of Wall Street expecting the stock to hit $300 and more after the retail giant announced its third-quarter earnings.

Notably, Wedbush’s Dan Ives has a $330 price target as he sees a “major inflection point” for the company. “Following a reacceleration in AWS growth and positive commentary this quarter, we believe investors have regained comfort in management's ability to retain a leading position in the AI space,” Ives said in a post on X.

Shares of Amazon jumped over 12% in premarket trading on Friday. Retail sentiment on Amazon jumped to ‘extremely bullish’ from ‘bullish’ territory a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

AWS Growth Supporting Retail

Amazon’s quarterly results on Thursday showcased that its cloud has continued to grow strongly, with Jassy noting on the post-earnings call that the company will further invest in artificial intelligence infrastructure.

Telsey Advisory Group analyst Joseph Feldman highlighted that the solid growth and profitability of Amazon Web Services (AWS) and advertising are expected to continue outperforming and supporting retail.

The company now expects fourth-quarter total net sales between $206 billion and $213 billion, compared with Wall Street expectations of $208.12 billion, according to data from Fiscal AI.

“The guidance incorporates gains from expanding product selection, focusing on value via sharper prices and promotional events, and offering faster fulfillment,” Feldman said.

Wall Street Action

Bank of America raised its price target on Amazon to $303 from $272 and maintained a ‘Buy’ rating, according to TheFly.

The fourth-quarter outlook suggests "a solid holiday," Bank of America added, and said it has its quarterly operating view to reflect accelerating higher-margin AWS revenue growth, shipping efficiencies, and retail headcount leverage.

UBS analyst Stephen Ju raised the firm's price target on the stock to $310 from $279 and maintained a ‘Buy’ rating. Amazon's long-anticipated revenue acceleration is materializing, with AWS growing 20% year over year in the third quarter, the clearest payoff yet from prior investments, Ju said.

JPMorgan also raised its price target on Amazon to $305 from $265 and kept an ‘Overweight’ rating. Citigroup analyst Ronald Josey expects the stock to hit $320, up from his previous target of $270, and maintained a ‘Buy’ rating.

Meanwhile, Barclays analyst Ross Sandler raised his price target on Amazon to $300 from $275 and keeps an ‘Overweight’ rating on the shares.

Shares of Amazon have gained nearly 20% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Amazon Narrows Cloud Gap With Microsoft, Google: Stock Soars Toward Best Day In Over 3 Years After Earnings Blowout

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