Next 6-12 months crucial for prediction platforms like Kalshi and Polymarkets
Investing.com - TD Cowen has reiterated its Buy rating and $300.00 price target on Amazon.com (NASDAQ:AMZN) following the company’s annual AWS re:Invent conference held from December 1-5. This target represents significant upside from Amazon’s current price of $230.78, aligning with the broader analyst consensus which remains strongly bullish with a 1.33 rating and targets ranging from $245 to $360, according to InvestingPro data.
The conference featured several key announcements, including the launch of new Nova GenAI models, such as Omni, a unified multimodal solution, and the rollout of custom Trainium 3 UltraServers that offer up to 50% cost reduction for training and inference along with 4.4 times more compute power.
Amazon also introduced new agentic AI features through AgentCore and QuickSuite, and provided updates on Zoox rideshare autonomous vehicles that operate on AWS infrastructure.
TD Cowen projects AWS will generate $128.1 billion in revenue in 2025, representing 19.1% year-over-year growth, with acceleration to 22.9% in 2026 and 23.9% in 2027, ultimately reaching $348.5 billion by 2030 at a 22% compound annual growth rate from 2025-2030. This growth trajectory builds upon Amazon’s already impressive performance, with total company revenue reaching $691.33 billion over the last twelve months and growing at 11.48%.
The firm forecasts AWS operating income will increase to $45.9 billion in 2025 and $117.8 billion in 2030, reflecting a 21% compound annual growth rate over the five-year period. Amazon currently trades at a P/E ratio of 32.34 but maintains a favorable PEG ratio of 0.62, suggesting it’s trading at a low P/E relative to near-term earnings growth – one of several key insights available through InvestingPro’s comprehensive research reports covering 1,400+ top US equities.
In other recent news, Amazon has been at the center of several developments following the AWS re:Invent conference. Key investment firms, including BMO Capital, Evercore ISI, KeyBanc, and Goldman Sachs, have reiterated their positive outlook on Amazon, maintaining high price targets and ratings such as Outperform and Buy. The conference showcased Amazon’s focus on agents, artificial intelligence, and flexible AI offerings, with analysts noting the potential for sustainable growth in AWS revenue. Evercore ISI specifically pointed out that the recent 20% year-over-year revenue growth in the third quarter is likely to continue, projecting similar growth into 2026.
Additionally, Amazon has agreed to pay €180 million to settle a tax dispute with Italian authorities. This settlement is part of a larger investigation into the company’s tax practices and labor issues. The agreement also includes modifications to an algorithm used by Amazon’s Italian transport division to monitor delivery drivers. These recent developments highlight Amazon’s ongoing strategic initiatives and legal resolutions.
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