Wall Street investors are heeding analysts’ advice and showing increased interest in Amazon.com Inc. (NASDAQ:AMZN) The e-commerce and cloud computing juggernaut saw its shares climb by as much as 1.2% to $187.29 on Monday, positioning the stock to surpass its previous closing high of $186.57 recorded in July 2021, as per Bloomberg data.
While other mega-cap tech titans like Meta Platforms Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT), and Nvidia Corp. (NASDAQ:NVDA) have reached record highs in recent months, Amazon has trailed behind, grappling with a post-pandemic selloff that saw its shares plummet by approximately 57%. Despite being a favorite among brokers, with 67 analysts advocating for buying Amazon’s stock and only two holding a neutral stance, investors have sought more than just analysts’ recommendations to regain confidence.
To woo investors back, Amazon has embarked on a path of aggressive cost-cutting and business restructuring, while the rising demand for artificial intelligence (AI) is beginning to bolster its bottom line. Additionally, Amazon Web Services, its once rapidly expanding cloud division, displayed signs of renewed growth momentum in the last quarter, alleviating concerns of a slowdown in demand.
Morgan Stanley analyst Brian Nowak highlighted the potential upside in retail profits, instilling greater confidence in the e-commerce giant’s capacity to deliver robust earnings before interest and taxes (EBIT) and free cash flow in the upcoming years. Nowak raised the stock’s price target to $215 from $200 in a note dated Sunday, indicating a 16% surge from the previous close. On average, analysts anticipate a target of around $209, as per Bloomberg data.
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