Amazon Stock in 2025: Why Analysts Are Bullish on AWS and AI Growth
- Why Are Analysts So Confident About Amazon’s 2025 Growth?
- How Does Amazon’s Financial Health Support Its AI Ambitions?
- What Are the Key Risks Despite the Optimism?
- FAQ: Amazon Stock Outlook
Amazon’s stock is riding high on Wall Street optimism, with analysts overwhelmingly bullish on its cloud (AWS) and AI-driven growth. AWS is projected to hit $128.1B in revenue by 2025 (+19.1% YoY), with long-term forecasts reaching $348.5B by 2030. Strong Q3 earnings, a $38B OpenAI deal, and $125B in planned 2025 capex underscore Amazon’s aggressive expansion. Of 72 analysts, 56 rate it a "Buy," with an average $295 price target. Here’s why the consensus screams opportunity—and what risks to watch.
Why Are Analysts So Confident About Amazon’s 2025 Growth?
The bullish sentiment hinges on AWS’s momentum. At December’s re:Invent conference, Amazon unveiled new GenAI tools and Custom-Trainium servers, fueling TD Cowen’s forecast of 22% annual AWS growth through 2030. "AWS isn’t just a cash cow—it’s the engine for Amazon’s next decade," notes BTCC’s lead tech analyst. Q3 numbers back this up: AWS revenue jumped 20% to $33B, while overall sales beat estimates at $180.17B (+13.4% YoY). CEO Andy Jassy called it the "strongest acceleration since 2022."
How Does Amazon’s Financial Health Support Its AI Ambitions?
Amazon’s balance sheet is firing on all cylinders. Operating cash flow surged 16% to $130.7B over 12 months, funding a $125B 2025 capex plan (revised up from $118B). The company also placed $15B in bonds—three times oversubscribed—to bankroll AI infrastructure. "Their ability to raise cheap capital is a moat," says a Wedbush report. The OpenAI partnership, meanwhile, signals Amazon’s bid to challenge Microsoft and Google in enterprise AI.
What Are the Key Risks Despite the Optimism?
Regulatory scrutiny and cloud competition loom. AWS’s 20% growth, while impressive, lags behind Microsoft Azure’s 29% (per Q3 data from TradingView). Margins could also thin as Amazon spends heavily on data centers. "The $125B capex is a double-edged sword," warns a Bank of America memo. Still, with 56 of 72 analysts recommending buys—and price targets up to $360—the Street sees more upside than peril.
FAQ: Amazon Stock Outlook
Is Amazon a good stock to buy in 2025?
Analysts overwhelmingly say yes. 78% of coverage maintains "Buy" ratings, citing AWS growth and AI investments. The average $295 target implies ~25% upside from current levels.
How much will AWS be worth by 2030?
TD Cowen projects $348.5B in annual AWS revenue by 2030, assuming 22% CAGR. This WOULD make AWS larger than today’s entire Amazon.
What’s Amazon’s biggest challenge?
Balancing AI spending with profitability. Operating income guidance of $21-26B for Q4 will test investor patience with Jassy’s long-game strategy.
