20% Gains Are in Play: Analysts Raise Amazon Price Target to $250

By Marco Piccolo

Oppenheimer boosts Amazon price target on margin gains and AI plans

Amazon (AMZN) received a bullish endorsement from Oppenheimer, with the firm increasing its price target from $215 to $250, signaling nearly 20% upside from current levels. The move reflects heightened confidence in Amazon’s gross margin performance, particularly within its e-commerce segment.

$AMZN https://t.co/J5SQZ23oEp price target raised to $250 from $215 at Oppenheimer – Outperform Rated pic.twitter.com/dIESX86GJf

— UPBOptionMil (@UPBOptionMil) June 20, 2025

According to analyst Jason Helfstein, Amazon is expected to achieve e-commerce gross margins of 9.1% in 2025 and 10.5% in 2026, driven by lower trade costs and operational efficiencies. The firm also raised consolidated EBIT margin estimates for the same years to 11.4% and 12.8%, respectively. These revised estimates now align more closely with Wall Street consensus.

While Amazon Web Services (AWS) forecasts remain unchanged, Helfstein noted potential for a ramp-up in the second half of 2025 as infrastructure capacity grows. Oppenheimer’s valuation now implies 9.5 times AWS revenue, 5.0 times e-commerce gross profit, and 23 times EBIT for 2026.

CEO Andy Jassy’s internal directives to integrate AI throughout Amazon’s operations played a role in the revised outlook. The company is leveraging generative AI and robotics to manage long-term headcount growth and improve efficiency. This strategy includes relocating thousands of employees to central hubs in Seattle, Arlington, and Washington, D.C., fostering closer collaboration and better oversight.

Despite a 4.4% decline in Amazon’s stock year-to-date, the analyst consensus remains overwhelmingly positive. AMZN stock holds a Strong Buy rating on TipRanks, with an average price target of $241.49, representing a 15.2% upside from current levels.

Meanwhile, the Amazon stock forecast algorithm on CoinCodex is pointing in the opposite direction. According to this prediction, AMZN will see a moderate but sustained decline for the remainder of 2025, finding support around the $195 price level.

Amazon commits $54 billion to UK expansion

In a parallel move signaling global ambitions, Amazon announced plans to invest £40 billion ($54 billion) in the United Kingdom over the next three years. The expansion, its largest in the UK to date, includes the construction of four fulfillment centers, upgrades to more than 100 operational buildings, and enhancements to its transport and data infrastructure.

Two new fulfillment centers in Hull and Northampton will open by 2026, creating 4,000 jobs. Additionally, Amazon will establish two state-of-the-art facilities in the East Midlands by 2027. The initiative also encompasses two new office buildings in East London and the redevelopment of Bray Film Studios in Berkshire.

Thousands of new jobs are set to be created across the UK, as Amazon announces a landmark £40 billion investment over the next three years: https://t.co/T9ZI3uYGDJ pic.twitter.com/xHQ2tBRjCI

— Department for Business and Trade (@biztradegovuk) June 24, 2025

The investment is seen as a major boost for the UK’s economy, with Prime Minister Keir Starmer calling it “a massive vote of confidence” in the country’s business environment. Amazon currently employs 75,000 workers in the UK, making it one of the country’s top private sector employers.
Part of the £40 billion commitment includes an earlier £8 billion pledge by AWS to build and operate data centers through 2028, aimed at increasing AI compute capacity across the region.

Amazon’s expansion aligns with the UK government’s efforts to attract foreign investment amid slower economic growth. However, the move comes as the company faces regulatory scrutiny, with the UK’s grocery regulator launching an investigation into its supplier payment practices.

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