Analysts unveil bold Amazon stock price target before earnings | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Amazon (AMZN) is doubling down on generative artificial intelligence.

The retail and tech giant plans to acquire Bee AI, a start-up that makes AI-powered wearable devices. The move signals Amazon’s entry into the world of personal AI hardware, competing with players like Meta (META) and Apple (AAPL) .

Bee makes a $50 bracelet that records and transcribes a user’s daily conversations. It then uses AI to generate to-do lists, reminders, and other helpful tasks.

Amazon confirmed that a deal has been signed, though it’s not yet closed. The company did not reveal the purchase price.

Shares of Amazon are up 4% so far this year, trailing the S&P 500’s 8.1% gain. As the second-quarter earnings season heats up, and with Alphabet already posting strong results, Amazon’s upcoming report could be another key factor, as a strong beat or a disappointing miss may spark sharp moves in the stock.

Amazon is scheduled to report its second-quarter earnings on July 31 next week.

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What to watch in Amazon’s upcoming earnings report

Retail remains Amazon’s largest revenue driver and an important source of profit. While the company’s guidance earlier this year reflected caution around tariffs, Deutsche Bank analyst Lee Horowitz sees reasons for optimism.

Horowitz wrote in a research note that tariff concerns were a key focus when Amazon gave its Q2 guidance, but with strong consumer demand and tariff-related cost hikes being delayed, there’s room for Amazon to beat Q2 and Q3 estimates.

“What has become abundantly clear is that in the absence of Temu and Shein, Amazon share gains have accelerated,” he added.

Amazon’s Prime Day, held in July, falls outside the second-quarter period but could influence the company’s third-quarter guidance.

Meanwhile, Amazon Web Services continues to draw attention. The cloud business is Amazon’s most profitable segment and a key driver of long-term valuation.

Although AWS remains the global leader in cloud market share, rivals Microsoft and Google are growing faster.

In the first quarter of 2025, AWS held 29% of the market, followed by Microsoft at 22% and Google at 12%, according to data from Synergy Research Group. Compared to the previous quarter, AWS lost one percentage point while Microsoft gained one.

Analysts raise Amazon stock price target before earnings

Bank of America has raised Amazon’s stock price target to $265 from $248 and reiterated a buy rating before the Q2 earnings.

The firm expects a beat in the retail sector and will focus on AWS’s growth for the year’s second half.

For AWS, Bank of America estimates a profit of $17.8 billion in the second quarter, topping both the Street’s estimate of $17 billion and Amazon’s own guidance high of $17.5 billion.

“We think 2Q Retail is setting up for a solid quarter, plus a strong 1Q for AWS backlog and accelerating quarterly AWS capex spending should drive accelerating 2H AWS growth,” the analysts wrote in a research report.

For the third quarter, Amazon expects revenue between $169 billion and $174 billion, compared with Wall Street’s forecast of $172.8 billion. The company guided GAAP operating income between $14 billion and $18 billion, below the Street consensus of $19.4 billion.

“Our revenue guide expectation assumes a longer Prime Day event is a modest benefit for full quarter, and that AWS accelerates slightly,” the firm wrote. “Our profit outlook is based on Amazon’s historical q/q conservatism.”

Citi also raised its price target on Amazon to $265 from $225 with a buy rating, citing improving retail trends.

The analysts added that rising demand for AWS and better margins make the stock remain one of Citi’s top internet picks.

Amazon stock closed at $228.29 on July 23.