Loop Capital Sees 61% Upside in Amazon Stock Price

Amazon's stock price has been impacted by increased capital spending and returns uncertainty, causing it to drop 7.49% over the past month.

This is in contrast to its peers, such as Microsoft and Alphabet, which have seen smaller declines of 2.07% and 3.19%, respectively.

Despite this, Loop Capital's Rob Sanderson remains bullish on Amazon, with a Street-high target of $405, implying an upside of roughly 61% from the current price.

Sanderson's thesis is based on three pillars: AWS re-accelerating toward a 20%+ clip on enterprise migrations and high-margin AI workloads, structural retail margin expansion, and a scaling ad engine at roughly 70%+ gross margins.