Amazon (NASDAQ: AMZN) has experienced a significant stock increase, rising from $186.40 to $231.14, a 24% gain, following its Q3 2024 earnings call on October 31. This surge has propelled year-to-date returns to 54.16%.
The earnings report revealed that Amazon exceeded analyst expectations, with revenues slightly above estimates and a more substantial earnings per share (EPS) performance. Additionally, Amazon introduced Amazon Nova, a suite of AI models designed to compete with offerings from Meta (NASDAQ: META) and OpenAI.
Amazon's $10 billion investment in Project Kuiper positions it as a potential competitor to Elon Musk's Starlink.
Analysts at JPMorgan have reaffirmed a bullish outlook on Amazon stock, with Doug Anmuth raising the price target to $280 from a previous $250. He anticipates a 7.5% year-over-year growth in holiday sales, indicating robust e-commerce performance.
Bernstein's Mark Shmulik also reiterated an 'Overweight' rating, increasing the price target to $265 from $235. He expects margins to rise to 11.4% by 2025 and advertising revenue to grow by around 20% in the same period.