Amazon (AMZN) Stock: Why $300 Isn’t a Pipe Dream

Wall Street’s favorite retail giant is quietly building momentum—and the charts hint at a breakout even skeptics can’t ignore.

Bulls see AWS growth and retail margins squeezing shorts. Bears? Still waiting for that ’overvalued’ call to pay off—any day now.

One thing’s clear: When AMZN moves, it doesn’t ask for permission. That $300 price target might just be a pit stop.

Fewer Tariff Concerns

US tariffs hit the stock market hard in 2025, sending indexes and major US stocks down. Amazon was one of the many big-tech/e-commerce companies that saw shares plunge. However, those tariff concerns have since eased up, thanks to a temporary tariff pause.

The so-called “de minimis” tariff, however, was left in place (albeit with a reduction), but this is actually good for Amazon, as it primarily impacts Chinese competitors that are directly selling to U.S. customers, such as Temu and Shein. The risk, of course, is that this is just a temporary pause and the trade war picks back up down the road, harming AMZN stock once again.

Better Margins

Additionally, Amazon has been seeing a nice improvement in its margins and profitability. Much of this is stemming from its use of AI. The company’s AI robots help in its fulfillment centers and can perform such tasks as lifting heavy objects, sorting, and carrying packages. Some robots also recognize damaged goods, preventing shipment. AI is also beneficial in helping Amazon’s e-commerce platform identify items that are frequently returned.

The use of AI has ultimately benefited Amazon’s margins. The company is using AI to both improve ad creation and deliver more relevant ads to consumers. One example of this is that it has developed a generative AI tool to help advertisers create AI-generated images for their sponsored ad campaigns. All this is leading to the company seeing strong operating leverage. North America’s operating income surged 16% in Q1, on only an 8% increase in revenue.

Hard-to-Resist Price Point

Lastly, with Amazon (AMZN) stock being a magnificent-seven member, its current low prices compared to forecasts make it an attractive investment choice. AMZN still trades at one of its lowest valuations in its storied history despite its rebound in the past month. The company’s long-term prospects remain promising, and could send AMZN back to decade-highs in the coming year.