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Founded in 1994 and headquartered in Seattle, Washington, Amazon.com, Inc. (AMZN) is a global leader in e-commerce and cloud computing, transforming the retail landscape through its innovative online marketplace, digital services, and AWS cloud platform. With a market cap of $2.5 trillion, Amazon connects millions of customers worldwide, leveraging cutting-edge technology to enhance shopping experiences and redefine the future of digital commerce.
Amazon's shares have outperformed the broader market considerably over the past year. AMZN has gained 49.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.7%. In 2025, AMZN stock is up 8.3%, surpassing SPX’s 2.7% rise on a YTD basis.
Narrowing the focus, AMZN has slightly outpaced the ProShares Online Retail ETF (ONLN), which has gained about 49.4% over the past year. However, AMZN has lagged behind on a YTD basis, while the ETF has delivered an 11.8% return over the same period.
Amazon declined over 2% on Jan. 27 amid a broader tech selloff driven by concerns over AI competition and market valuation pressures. Despite this pullback, the stock has gained 45.6% in 2024, supported by AWS expansion, AI advancements, and improved retail efficiency.
Following its Q3 earnings release on Oct. 31, AMZN stock fell more than 3% despite delivering strong financial results. Revenue grew 11% year over year to $158.9 billion, exceeding estimates by 1%, while GAAP EPS of $1.43 surpassed consensus by 25.2%. Operating profit came in at $17.41 billion, 18.1% above expectations. However, Q4 revenue guidance of $185 billion slightly missed the analyst estimates.
For the current fiscal year, which ended in December, analysts expect AMZN’s EPS to grow 86.6% to $5.30 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 49 analysts covering AMZN stock, the consensus is a “Strong Buy.” That’s based on 45 “Strong Buy” ratings, three “Moderate Buys,” and one “Hold.”
The configuration has been stable over the past few months.
On Jan. 31, Joe Feldman from Telsey Advisory upgraded Amazon to a “Buy,” with a price target of $275, implying a potential upside of 15.7% from current levels.
The mean price target of $256.53 represents a 7.9% premium to AMZN’s current price levels. The Street-high price target of $306 suggests an upside potential of 28.7%.
