Goldman Sachs Lifts Amazon Price Target to $275 on AWS Strength

Goldman Sachs kept its Buy recommendation on Amazon (AMZN, Financials) but boosted its price target from $240 to $275. This is because Amazon Web Services is expected to develop faster and advertising is still going well.

Shares of Amazon closed at $222.41 on Thursday. In the last six months, they have gone up by almost 25%. The stock is currently worth $2.37 trillion on the market, thanks to a 10.9% increase in revenue over the past year.

Goldman's analysts expect AWS to post more than 20% top-line growth and maintain low- to mid-30% GAAP EBIT margins through late 2025 and into 2026. The bank highlighted several growth drivers, including AI-related services, backlog strength, easing capacity constraints, and Amazon's custom chip initiatives.

The firm also noted an upside-to-downside skew of roughly 3:1 from current levels, suggesting room for further gains even after this year's rally.

Beyond AWS, Amazon continues to expand its consumer and services businesses. The company recently launched a consolidated private label grocery brand, extended autonomous vehicle testing for Zoox into Washington, D.C., and signed new partnerships with the NBA and FanDuel.

Goldman's revision underscores investor confidence that cloud growth and advertising demand will offset competitive pressures in retail. Amazon's next earnings report will be the next key test of those expectations.