Bank of America Predicts Amazon Stock Surge Ahead of Earnings: Why You Should Buy Now
- Why Is Bank of America Bullish on Amazon?
- How Does Amazon’s Retail and Cloud Growth Look?
- What’s Driving Amazon’s Stock Performance?
- What’s the Deal with Amazon’s Satellite License in Nigeria?
- How Does Amazon’s Valuation Compare?
- What Other Stocks Did Bank of America Highlight?
- What’s Next for Amazon Investors?
- FAQs
Bank of America analysts are bullish on Amazon (NASDAQ: AMZN), citing strong growth potential in AWS and retail. With earnings around the corner and a satellite broadband license in Nigeria, Amazon’s stock could be poised for a breakout. Here’s why investors should pay attention.
Why Is Bank of America Bullish on Amazon?
Bank of America analyst Justin Post recently upgraded Amazon’s price target, emphasizing the untapped potential of AWS and AI integration. He noted,The current stock price, according to Post, is undervalued due to short-term cloud sector concerns, but he expects a rapid turnaround.
How Does Amazon’s Retail and Cloud Growth Look?
Amazon continues to dominate e-commerce while optimizing its retail efficiency. Post highlighted that the company’s earnings growth could outpace other tech giants. In Q3 2025, Amazon reported an EPS of $1.95, beating estimates by 23.4%. Analysts project 2025 annual earnings at $7.17 per share, a 30% increase from 2024. For 2026, EPS is forecasted at $7.85, up another 9.5%.
What’s Driving Amazon’s Stock Performance?
Year-to-date, Amazon’s stock has risen 3%, and over the past 52 weeks, it’s up 11.4%. However, it still trails the S&P 500 (17.7%) and the Consumer Discretionary ETF (11.6%). Bank of America sees this as an opportunity, predicting further upside as AWS growth accelerates and retail margins improve.
What’s the Deal with Amazon’s Satellite License in Nigeria?
Amazon just secured a 7-year satellite broadband license in Nigeria, marking its entry into Africa’s digital market. This MOVE pits Amazon’s Project Kuiper against Elon Musk’s Starlink. The Nigerian Communications Commission (NCC) also approved licenses for Israel’s NSLComm and Germany’s Satelio IoT Services, signaling a competitive satellite broadband landscape.
How Does Amazon’s Valuation Compare?
Amazon’s current market cap stands at $2.6 trillion, making it a global leader in e-commerce and cloud computing. With AWS expanding and retail operations streamlining, the company is well-positioned for multi-year growth. Bank of America’s bullish stance aligns with Amazon’s track record of beating earnings expectations for four consecutive quarters.
What Other Stocks Did Bank of America Highlight?
Bank of America’s upgrade list included Brookdale Senior Living (NYSE: BKD), Carvana (NYSE: CVNA), Corning (NYSE: GLW), and Vertiv (NYSE: VRT). Brookdale’s target was raised to $13 due to operational leverage, while Carvana’s target jumped to $515, citing its best-in-class e-commerce growth.
What’s Next for Amazon Investors?
Amazon’s Q4 2025 earnings report is imminent, with analysts expecting $1.97 EPS, up from $1.86 a year ago. Given its history of outperformance, investors are watching closely. The combination of AWS expansion, retail efficiency, and satellite ventures makes Amazon a compelling buy, according to Bank of America.
FAQs
Why is Bank of America recommending Amazon now?
Bank of America believes Amazon’s current valuation doesn’t fully reflect AWS’s growth potential, especially with AI integration by 2026.
How has Amazon’s stock performed recently?
Amazon’s stock is up 3% YTD and 11.4% over the past year but still lags behind the S&P 500.
What’s significant about Amazon’s Nigeria license?
The license allows Amazon to deploy Project Kuiper in Africa, competing directly with Starlink in the satellite broadband market.
