Weekly forecast: Amazon stock rebounds from slump as analysts raise price targets

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Mikhail Vnuchkov

02.08.2025

Weekly forecast: Amazon stock rebounds from slump as analysts raise price targets — Analysts raise price targets after Amazon stock pullback

Amazon shares ended the week down more than 8%, closing at $214.75 following the release of its Q2 2025 earnings report. While the company beat expectations on most metrics, analysts described the report as "unimpressive."

UBS analyst Steven Ju called the market reaction “extreme,” pointing out that investors were disappointed with Amazon Web Services (AWS), which posted year-over-year growth of about 17%—slightly below some expectations of 18%.

Overall, Amazon outperformed market expectations:

- Revenue: $167.7 billion (vs. expected $162.05 billion)

- EPS: $1.68 (vs. expected $1.32)

- Net income: $19.2 billion (vs. expected $17 billion)

The stock decline also came amid broader geopolitical tensions: on August 1, Donald Trump imposed new tariffs on most U.S. trading partners and ordered nuclear submarines into active patrol in response to rising tensions with Russia.

Amazon acknowledged investor concerns over the lack of clear signs of AWS revenue acceleration, despite increased capital spending for the cloud division. UBS estimates Amazon will invest around $250 billion in capex between 2024 and 2026.

Still, Amazon’s e-commerce and advertising segments outperformed expectations, and the company forecasts Q3 net sales of $174.0–179.5 billion, beating LSEG’s consensus estimate of $173.08 billion.

Q3 operating income is projected between $15.5–20.5 billion, compared to analyst expectations of $19.45 billion.

Analysts stay bullish despite AWS concerns

Analysts from Barclays, BofA Securities, DA Davidson, and Goldman Sachs responded positively to the results by raising their price targets.

- Barclays raised its target to $275, citing Amazon’s AI potential.

- BofA set its target at $272, highlighting retail strength.

- DA Davidson raised its target to $265 and maintained a “Buy” rating.

- Goldman Sachs increased its target to $240, emphasizing e-commerce and perishable goods strategy.

The consensus reflects continued confidence in Amazon’s financial strength and long-term growth.

According to the SMA Ribbon indicator, AMZN had been trading above its 20, 50, 100, and 200-day SMAs before the drop. Analysts recommend buying the dip, forecasting a rebound toward $218 and $226 in the coming week.

Amazon stock daily chart. Source: CoinMarketCap

Historically, AMZN tends to recover quickly from sharp declines. For example, after a 12% drop in August last year, the stock rallied nearly 50% by February 2025, reaching $242. Analysts expect a similar recovery trajectory this time.

As we wrote, Apple stock dips to $207 as strong earnings fail to offset AI concerns

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