Tigress Financial Raises Amazon Price Target to $385 on AI Growth

Tigress Financial Partners has raised its price target for Amazon.com Inc. to $385, up from an undisclosed previous level, while maintaining a Buy rating on the stock. The new target suggests strong upside potential, with InvestingPro data indicating that Amazon is currently undervalued. The stock's P/E ratio of 20.4 is considered low relative to its near-term earnings growth prospects.

The firm highlights Amazon’s integrated AI capabilities as a key driver for accelerating growth across Amazon Web Services (AWS) and AI operations. Additional growth factors include expanded advertising monetization, increased retail purchase frequency, and growing Prime engagement. Tigress Financial believes Amazon is approaching an inflection point in business performance as earnings from its investment cycle begin to outpace growth in operating capital.

AWS and AI are identified as the company’s most powerful growth engines, with Amazon posting revenue growth of 15.77% over the last twelve months. The company also boasts a robust gross profit margin of 50.77% and a return on assets of 15.22%. The firm notes that AI infrastructure is transitioning from a capital burden to a source of return on capital and economic profit.

Amazon Advertising is becoming a high-margin growth engine, while live sports are driving Prime engagement, advertising, and commerce. Third-party sellers are further enhancing Amazon’s marketplace and logistics network, turning it into a platform business. Other analyst firms, including TD Cowen, Wells Fargo, Susquehanna, and Cantor Fitzgerald, have also recently reiterated positive ratings and price targets for Amazon, citing strong growth in cloud computing and advertising sectors.