- Amazon shares rose amid a broader tech stock recovery, supported by heightened holiday shopping expectations.
- The company announced a $50 billion investment to expand Artificial Intelligence and supercomputing for U.S. government customers.
- Analysts from BNP Paribas Exane and BMO Capital highlighted growth potential in cloud services, advertising, and e-commerce.
- A holiday spending survey indicated that 94% of respondents plan to shop on Amazon’s platform this season.
- Price targets for Amazon stock suggest significant upside within the coming weeks, influenced by year-end sales and Q4 earnings.
Shares of Amazon (AMZN) have advanced this week amid a rebound in technology stocks. The rise comes as the company prepares for its largest annual sales period, including Thanksgiving, Black Friday, and Christmas, which are expected to boost spending on its platform.
On Monday, Amazon revealed a plan to invest up to $50 billion in artificial intelligence and supercomputing infrastructure to serve U.S. government customers. This announcement helped push AMZN shares higher, adding momentum to the tech rally.
Analysts are positive on Amazon’s prospects. BNP Paribas Exane’s Nick Jones rated the stock highly and set a price target of $320, reflecting an estimated 41% increase from current levels. Jones noted that Amazon leads in both e-commerce and Amazon Web Services (AWS), the company’s cloud computing division. AWS’s scale and profitability remain strong contributors to the company’s growth. He also pointed to Amazon’s expanding digital advertising business, which analysts see as having ample room to gain market share.
BMO Capital’s Managing Director, Brian Pitz, also expressed optimism in a client note. After a survey of 1,000 U.S. shoppers indicated that 94% plan to use Amazon for holiday purchases, BMO raised its price target. The company’s extensive logistics network and speedy delivery make it a top choice for holiday buyers.
The stock is expected to reach $250 soon, positioning it for potential gains early next year. Strong fourth-quarter results could further support this upward trend.
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