TD Cowen Raises Amazon Price Target, Expects Q2 Beat and Strong Q3 Guidance
Summary
TD Cowen has raised its price target for Amazon (AMZN) to $250 from $240, maintaining a 'Buy' rating. The firm anticipates Amazon will beat Q2 2025 consensus estimates for revenue and operating income by 1% and 10% respectively, driven by strong performance in AWS, advertising, and e-commerce. TD Cowen also expects robust Q3 guidance, projecting revenue 1.1% and operating income 6% above consensus, citing AWS re-acceleration and overall business momentum.
TD Cowen Elevates Amazon Price Target to $250 Amid Strong Q2 Expectations and Robust Q3 Guidance
SEATTLE, WA – July 8, 2025 – TD Cowen has reiterated its 'Buy' rating on Amazon.com (NASDAQ: AMZN) and increased its price target to $250 from $240. This upward revision reflects the firm's strong conviction in Amazon's upcoming financial performance and sustained business momentum across its diverse segments.
Anticipated Q2 2025 Performance Beat
TD Cowen analysts are projecting that Amazon's second-quarter 2025 results will surpass consensus estimates. Their forecasts indicate that both revenue and operating income are expected to exceed current market expectations by approximately 1% and 10%, respectively. This optimistic outlook is underpinned by continued robust performance in Amazon Web Services (AWS), the company's advertising division, and its core e-commerce operations.
Key Drivers of Q2 Optimism:
- AWS Re-acceleration: The cloud computing segment, AWS, is showing clear signs of re-acceleration, contributing significantly to overall revenue growth and profitability.
- Advertising Strength: Amazon's burgeoning advertising business continues to capture market share and deliver strong financial contributions.
- E-commerce Resilience: Despite a maturing market, Amazon's e-commerce platform demonstrates sustained strength, driven by customer loyalty and efficient logistics.
Solid Q3 Guidance Expected
Looking ahead to the third quarter of 2025, TD Cowen anticipates that Amazon will issue strong guidance. The firm's projections for Q3 revenue are 1.1% above consensus, while their operating income estimates are 6% higher than current market expectations. This forward-looking confidence is a testament to Amazon's operational efficiency and its ability to capitalize on market opportunities.
Long-Term Growth and Operational Leverage
In light of the positive momentum, TD Cowen has incrementally raised its long-term revenue and profitability estimates for Amazon. The new $250 price target is a direct reflection of the firm's bullish stance on Amazon's multi-segment growth strategy and its increasing operational leverage. The analysts believe that Amazon is well-positioned to continue its growth trajectory, driven by innovation and market leadership in cloud computing, digital advertising, and online retail.
This revised price target and optimistic forecast underscore Amazon's strong market position and its potential for continued financial outperformance in the coming quarters.