Amazon Stock Price Prediction for 2025: Where Will It Be in 1 Year
Analyst expectations for where Amazon stock is headed vary somewhat. However, Wall Street remains optimistic overall, especially in the short term. The post Amazon Stock Price Prediction for 2025: Where Will It Be in 1 Year appeared first on 24/7 Wall St..
It’s been a rough month for Amazon.com Inc. (NASDAQ:AMZN), whose losses have mirrored the broad Nasdaq, which has officially entered correction territory. Shares of AMZN are down -13.93% over the period, while the tech-heavy index is down -12.38% since its six-month high on Dec. 16, 2024.
It is clear that Amaznon has been one of the best long-term stocks in the history of the stock market. These days, the company is a colossal retail, cloud computing, artificial intelligence (AI), consumer electronics, media and advertising conglomerate. But 2025 hasn’t been kind to shareholders who have endured a year-to-date loss of -11.31%.
Still, while there can be little doubt about its current financial health, investors and potential investors may be right to wonder whether growth can continue at Amazon’s historic pace, and whether the stock is safe as a long-term holding. Let’s take a look at where the share price could be headed.
Why Invest in Amazon?
In the past 20 years, Amazon’s stock is up more than 8,739%. The company has been called one of the most influential economic and cultural forces in the world, and its brand is one of the world’s most valuable. Though the stock tumbled as the COVID-19 pandemic waned and lockdowns ended (along with the broader markets), it has more than recovered.
Shares of this Magnificent 7 member recently hit an all-time high. It is hard to imagine that the company or its share price will collapse any time soon, but analysts and investors may see the stock as overbought. Let’s see what Wall Street expects.
Amazon as a Company
The company engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores internationally. It also manufactures and sells electronic devices and develops and produces media content. Amazon Web Services (AWS) provides compute, storage, database, analytics, machine learning, and other services. And Amazon Prime is the company’s membership program.
Amazon is based in Seattle. It was founded in 1994 by Jeff Bezos, the former chief executive officer and now executive board chair. Amazon went public in May of 1997. Its retail competitors include Alibaba Group Holding Ltd. (NYSE:BABA), Kroger Co. (NYSE:KR) and Walmart Inc. (NYSE:WMT). It also competes with the likes of Netflix Inc. (NASDAQ:NFLX) and Microsoft Corp. (NASDAQ:MSFT).
The company continues its push into artificial intelligence with an update of its Alexa feature to Alexa+. AWS investments in cloud computing and AI also continue, with the former being the world’s largest cloud services provider and the latter nearing its debut of its “Nova” chatbot, which will compete in price with ChatGPT. Additionally, Amazon has been expanding its same-day delivery services, and its entertainment division has secured the James Bond franchise with the acquisition of MGM Studios. Headwinds include ongoing labor issues. The most recent quarterly results showed strong performance, with AWS as a major growth driver.
Amazon as a Stock
The share price is about 12% higher than a year ago, much of that gain coming in the third quarter. But the stock has plummeted nearly 20% since Feb. 4. Note that the $270.33 consensus price target is greater than the all-time high share price seen earlier this year.
Out of 47 analysts covering AMZN, all but one give it a buy rating, with the other giving it a hold rating. Overall, the stock receives a consensus “Strong Buy” rating. Loop Capital and Wells Fargo recently reiterated buy-equivalent ratings, and with more than 65% of shares held by institutional investors — including notable stakes from Vanguard, BlackRock and State Street — the stock is popular among Wall Street’s sell-side firms.
Wall Street expectations for where the stock goes in the next 52 weeks vary. While analysts overall anticipate healthy upside, the lowest price target indicates a decline in the share price. The consensus projection signals strong upside potential for the next 52 weeks.
| Low target | $203.00 | 4.17% |
| Mean target | $270.33 | 38.73% |
| High target | $306.00 | 57.03% |
Amazon does face some headwinds and risks in addition to those mentioned above. Consumers appear to be pulling back on spending due to ongoing inflation and a possible recession. Increasing costs of AI investment could have customers reducing spending as well. And while the company dominates in the retail space and is a tech leader, competition in neither category is likely to go away anytime soon. All these things could have a huge impact on profitability.
Despite some skeptics, the prospects are optimistic overall, especially in the short term. The strong consensus Buy recommendation and the upside potential far outweighing the downside potential confirm this.
The post Amazon Stock Price Prediction for 2025: Where Will It Be in 1 Year appeared first on 24/7 Wall St..
