Amazon.com, Inc. (NASDAQ:AMZN) is a Must-Watch AI Stock on Wall Street. On October 28, UBS reiterated the stock as “Buy” and raised its price target to $279.00 from $271.00 on the stock ahead of earnings on Thursday. The firm believes that Amazon is poised for another strong quarter.
“We raise our price target to $279 from $271 as we roll forward our valuation parameters by one quarter.”
According to the firm, there may be “some noise” in Amazon’s reported third-quarter operating income, and its headline guidance for OI may be below consensus.
The firm believes that focus will probably be on the reported AWS growth rate. Expectations are at 18% y-o-y with a likelihood for greater acceleration shifting into 4Q25 and 2026.
Moreover, analyst Stephen Ju sees the potential for upside for most of Amazon’s business segments.
“Overall, we continue to see the potential for upside across Amazon’s business segments including e-commerce, cloud, advertising, and Kuiper / low earth orbit satellites,” the analyst wrote. “And while we get greater visibility into when those benefits could arrive, particularly on Kuiper, the overall uplift has yet to materialize.”
According to Ju, Amazon’s relative underperformance this year has opened up a good buying opportunity.
“In our view, with AMZN shares otherwise having languished at +4% YTD (relative to its Internet megacap peers) and with much of the benefits of its investments / CapEx across all of e-commerce, AWS, content / advertising, and lastly Kuiper still to be realized, it remains a coiled spring. Therefore as revenue begins to show up more meaningfully, the subsequent upward revisions to operating profit and FCF dollars should arrive at a greater magnitude vs its peers.”
Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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