Optimistic Forecast for Amazon’s Stock Price
The Amazon stock is on the verge of a potential significant price jump. The investment bank Morgan Stanley has raised its price target for Amazon from $250 to $300. This indicates a growth potential of about 35 percent compared to the current price level.
Factors Behind the Positive Assessment
- Decreasing Tariffs: The U.S. government’s announcement to reduce import tariffs on Chinese products from 145% to 55% provides significant relief for Amazon’s cost structures.
- Growing AI Revenue: Amazon’s expansion in the field of artificial intelligence opens up new sources of revenue and could significantly boost profit development.
Morgan Stanley has also revised its earnings forecasts for Amazon upwards. For the year 2026, an earnings per share of about $8 is now expected, representing an increase of up to 9% compared to previous forecasts. This adjustment considers the improved external conditions and reduced tariff risks.
In the first quarter of 2025, Amazon already reported earnings per share of $1.59, while revenue rose by about 8.6% to approximately $155.7 billion. For the full year, an EPS of around $6.21 is projected.
Impact on Investors and Future Developments
For investors, these positive developments, favored by a stable geopolitical environment, may signify long-term price increases for Amazon stock. The upcoming earnings report at the end of July could provide additional momentum.