Analysts revise Amazon stock-price targets ahead of Q2 earnings report | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

If you don’t know why there’s no sun up in the sky, look again.

Washington state’s largest city gets a lot of stormy weather, but one investment firm is seeing nothing but blue skies for Amazon (AMZN) this week.

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The e-commerce and cloud-services giant is scheduled to report second-quarter results on July 31 after the closing bell, and Wedbush analysts are looking beyond the clouds in a research note entitled “Seattle Sunny Summer Skies.”

Investor sentiment is broadly positive, the investment firm said, with expectations improving in recent weeks following May’s disappointing second-quarter guidance.

Still, profitability forecasts for the year remain depressed as investors weigh the impact of President Donald Trump’s sweeping tariff agenda. macroeconomic uncertainty, currency risk, rising expenses to support artificial-intelligence initiatives, and an uncertain cost trajectory associated with Project Kuiper, Amazon’s satellite network.

The company said that at Kennedy Space Center it recently opened a 100,000-square-foot payload-processing facility that prepares satellites for launch.

Amazon CEO Andy Jassy says many consumers will have robots in the home in the next 10 years or so.

Amazon CEO: No major price increases

“We think the risk/reward is attractive, and we see opportunity for Amazon to deliver upside to current operating-income expectations,” Wedbush said.

The firm said it was focusing on Amazon’s retail performance and consumer-demand trends; widening operating margins supported by a product-mix shift to wider-margin revenue; momentum within the Amazon Web Services cloud division, and emerging monetization of its AI efforts.

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Wedbush, which maintained its outperform rating on Amazon and boosted its price target to $250 from $235, said it was also monitoring capital-spending requirements to support infrastructure and AI investments, plus persistent growth within the advertising business.

“We expect Amazon’s [market-share] gains of e-commerce and total retail to continue, supported by faster shipping speeds and growing penetration in household essentials,” the firm’s analysts said.

Wedbush said Amazon continued to increase market share in total retail, and the U.S. backdrop is favorable in Q2. Management in May said that the company had not seen any indication of softening demand in the core retail business.

In June, Amazon CEO Andy Jassy told CNBC’s Jim Cramer that the tech giant hadn’t seen significant price increases.

“We did a lot of forward buying several months ago, and then a lot of our sellers, our third-party selling partners, forward deployed a lot of inventory to avoid some of the issues with the uncertainty around where tariffs are going to settle,” he said.

Jassy said Amazon had about two million sellers in its marketplace. Even if some sellers pass on the costs of the Trump administration’s tariffs to customers by raising prices, he said, many instead will “take share and not increase prices.”

Analyst: Data show better-than-expected quarter

Jassy called generative AI “the most transformative technology of our lifetime” and predicted that “many, perhaps most, consumers will have robots in the home sometime in the next 10 years or so.”

Amazon shares are up 27% from a year ago and up about 5% year-to-date.

Other investment firms also issued research notes ahead of Amazon’s earnings.

Stifel analyst Mark Kelley raised his price target on the company to $262 from $245 and affirmed a buy rating on the shares, according to The Fly.

Heading into Q2 earnings for the investment firm’s e-commerce and consumer app coverage, the analyst said third-party data suggest a better-than-expected quarter as the Trump administration has either struck more favorable deals or pushed out tariff implementation while waiting for deals.

The investment firm was “too conservative in our models” after Trump’s early-April tariff reveal, he said. Stifel has raised some other estimates within the sector.

Wells Fargo raised its target on Amazon to $245 from $238 and maintained an equal weight rating.

The firm estimated that the AI startup Anthropic should contribute about 1 percentage point of additional growth to AWS revenue in the second half compared with the first half, +2.4% vs. +1.3%. That supports the potential for stock outperformance in the second half of 2025, the firm said.

Amazon has invested about $8 billion in Anthropic.

Wells Fargo sees the 2026 contribution from Anthropic increasing to +3.1%, reinforcing the case for second-half growth to continue throughout 2026 as Anthropic inference revenue scales.

Further, the firm sees inference as driving more than 75% of Anthropic’s revenue contribution in 2026.

And it sees AI’s total contribution to AWS scaling to 10% in 2026 from less than 3% in 2024.