Loop Capital Sees 61% Upside for Amazon Stock

Amazon's stock price has fallen sharply in recent months, despite its AWS cloud business posting its fastest growth in 18 quarters.

The tech giant's current stock price sits at $251.89, with an average Wall Street target of $328.17, implying a 30% upside.

However, one analyst, Loop Capital's Rob Sanderson, has a more bullish outlook, predicting a 61% return to $405.

Sanderson's thesis is based on three pillars: AWS re-accelerating towards a 20%+ clip, structural retail margin expansion from regionalized fulfillment and marketplace fees, and a scaling ad engine at roughly 70%+ gross margins.

Amazon's peers, such as Microsoft and Alphabet, have held up better during this period, with their stock prices showing less decline.