Amazon Stocks Soar as Analyst Upgrade Hints at Robust Growth

Shares of Amazon surged on Friday after Evercore ISI analyst Mark Mahaney raised his price target to $355, citing robust growth in e-commerce operations and AI-powered retail engagement.

A recent survey conducted by Evercore found that Amazon commands a 92% penetration rate among U.S. online shoppers, significantly outpacing Walmart's 68%. The data also revealed that customer satisfaction scores for Amazon reached 76%, while approximately 60% of Prime subscribers indicated they would maintain their membership even with a $20 annual fee increase.

The company's AI technology is generating tangible commerce results, with 57% of users engaging with Alexa purchasing products they hadn't actively searched for. This indicates artificial intelligence is generating fresh demand patterns beyond simply redirecting existing shopping behavior.

Amazon Web Services (AWS) plans to deploy 2 million Nvidia GPUs between 2027 and 2028, signaling a significant expansion of its cloud infrastructure. Analysts maintain a Strong Buy rating on Amazon with a consensus price target of $334, suggesting approximately 25% appreciation potential from present trading levels.

The company's Q2 earnings showed EPS of $5.75, significantly exceeding the $1.82 estimate, with revenues increasing 19.6% year-over-year. AWS revenue expanded roughly 37% to reach $42.2 billion in Q2.