In 2025, Amazon stock has seen consolidation but continues to deliver earnings surprises, making it a good time for accumulation. Oppenheimer raised its price target to $305 due to Amazon Web Services (AWS) doubling capacity by 2027, with $3 billion revenue potential per gigawatt.

Amazon, headquartered in Seattle, is a global e-commerce giant with a strong position in cloud computing through AWS. Q3 2025 saw a 13% revenue growth to $180.2 billion, with AWS driving 20% revenue growth to $33 billion.

AWS, Amazon’s key cash flow machine, reported a $11.4 billion operating income with a 34.5% margin. With significant capacity expansion plans, AWS is poised for sustained growth and margin expansion in the coming years.

Amazon’s investments in AI, supercomputing, logistics, and automation are set to accelerate growth in the next 24-36 months. With $130 billion in operating cash flows and $94.2 billion cash buffer, financing big investments is not a concern.

International markets contributed 23% of Amazon’s revenue in Q3 2025, with strong growth expected. Investments in Prime Video advertising, European logistics, and UK infrastructure are aimed at boosting growth and value creation.

Analysts rate AMZN stock a consensus “Strong Buy” with a mean price target of $296.78, implying a 27% upside potential. Expectations of healthy earnings growth of 29.66% for FY 2025 and attractive valuations support this bullish view.

Read more at Yahoo Finance: Analysts Say AWS Will Drive ‘Significant Upside’ for Amazon. Should You Buy AMZN Stock Now?