Key Takeaways
- Shares of Amazon jumped approximately 4% following Evercore ISI’s price target increase to $355 from $315
- Analyst Mark Mahaney highlighted impressive survey results showing 92% penetration among U.S. online shoppers and accelerating AI-powered retail activity
- Amazon Web Services will deploy 2 million Nvidia GPUs between 2027-2028, signaling robust cloud infrastructure investment
- Analyst consensus remains at Strong Buy with a mean price target of $334
- Second quarter earnings showed EPS of $5.75, crushing expectations of $1.82, while revenue increased 19.6% annually
Shares of Amazon (AMZN) surged approximately 4% during Friday’s session, beginning the day at $266.43, following an optimistic outlook from Evercore ISI’s Mark Mahaney, who elevated his price target from $315 to $355 while maintaining his Buy recommendation.
Mahaney holds the 423rd position among over 12,500 financial analysts monitored by TipRanks, boasting an impressive 84% accuracy rate on Amazon calls and delivering average returns of 21.81% per recommendation across one-year timeframes. His proven performance lends credibility to his latest assessment.
The bullish revision drew support from Evercore’s comprehensive U.S. Online Retail survey, which revealed multiple encouraging indicators for Amazon’s e-commerce operations.
The company commands 92% penetration among U.S. online shoppers, significantly outpacing Walmart. Consumer satisfaction registers at 76%, while approximately 60% of Prime subscribers indicated willingness to maintain membership even with a $20 annual price increase.
Emerging agentic AI capabilities are generating tangible sales impact. Survey data revealed that 57% of Alexa AI adopters purchased products they hadn’t previously searched for, indicating AI-driven discovery is generating incremental demand beyond simple search redirection.
Faster Fulfillment Driving Higher Spending
Logistics performance showed notable improvement. Same-day delivery utilization recovered to 49%, while Prime subscribers leveraging same-day options now spend 3.1 times more than non-Prime customersāthe largest spending differential Mahaney has observed in his coverage.
Amazon’s Perishable Checkout feature is accelerating grocery adoption, with approximately half of exposed users adding fresh products to their shopping carts.
Regarding infrastructure investment, AWS continues aggressive expansion. The company intends to acquire 2 million premium Nvidia GPUs, including next-generation Blackwell Ultra and Rubin processors, spanning 2027 through 2028. This pushes total disclosed chip acquisitions to approximately 3 million units.
Market participants interpret this substantial GPU procurement as clear evidence that artificial intelligence workload demand on AWS remains robust, with Amazon demonstrating commitment through significant capital allocation.
Second Quarter Performance Exceeded Expectations
Amazon’s latest quarterly results, released July 30, reinforced the optimistic narrative. The company delivered Q2 earnings per share of $5.75 versus consensus projections of $1.82, surpassing expectations by $3.93. Total revenue reached $200.61 billion, exceeding the $197.03 billion forecast and representing 19.6% year-over-year growth.
AWS revenue expanded roughly 37% to $42.2 billion in the second quarter, while both Amazon’s artificial intelligence and semiconductor divisions individually achieved annualized revenue run rates exceeding $25 billion.
From an institutional perspective, Athena Wealth Management expanded its Amazon holdings by 47% throughout Q2. Multiple additional investment firms similarly increased their positions during this timeframe.
Street sentiment remains decidedly bullish. With 39 Buy ratings and one Hold recommendation issued over the trailing three months, the consensus stands at Strong Buy. The mean analyst price target of $334.05 suggests approximately 25% appreciation potential from present levels.
Mahaney’s updated $355 objective exceeds the Street average, implying 33% upside from Friday’s opening quotation.
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