TLDR
- Amazon is exploring launching its own stablecoin for online transactions to cut billions in credit card processing fees
- Oppenheimer raised Amazon’s price target to $250 from $215, citing improved margin expectations and trade outlook
- The move follows Trump’s pro-crypto policies and the Senate passing the GENIUS Act to regulate stablecoins
- Amazon could earn new revenue from interest on customer funds held in stablecoins
- Wall Street analysts remain bullish with 45 of 53 rating Amazon a “Strong Buy”
Amazon is making moves in the cryptocurrency space while analysts boost their price targets for the e-commerce giant’s stock.
The company is exploring launching its own stablecoin for online transactions. This could help Amazon bypass billions in credit card processing fees that currently eat into profits.
🚨JUST IN: Amazon & Walmart are reportedly considering launching a stablecoin according to the WSJ.
Every one is scrambling to launch their stablecoins. pic.twitter.com/QChTiJUblE
— Coin Bureau (@coinbureau) June 13, 2025
The stablecoin discussion comes as the crypto environment heats up in 2025. President Trump’s pro-crypto stance has created a more favorable regulatory climate.
Trump delivered on campaign promises by signing an executive order to establish a U.S. strategic Bitcoin reserve. He has called himself the first “crypto president” and vowed to make America the “crypto capital of the world.”
The Senate recently passed the GENIUS Act. This landmark bill sets federal guidelines for U.S. dollar-pegged stablecoins for the first time.
Stablecoin Strategy Could Cut Costs
Amazon’s stablecoin exploration reflects a broader trend among major retailers. Walmart and other multinational giants are also considering issuing their own digital currencies.
The appeal is clear. Credit and debit card payments come with interchange fees that merchants pay to card issuers. Mizuho estimates Walmart pays just under 2% in interchange fees on card transactions.
For Amazon, eliminating these fees could boost margins. The company could also create an entirely new profit stream by earning interest on customer funds held in stablecoins.
Amazon remains in early phases of exploring stablecoin options according to Wall Street Journal sources. Some discussions have centered on issuing their own stablecoin specifically for online transactions.
Retailers face challenges in persuading consumers to adopt stablecoins. They would likely need to offer incentives which could offset some fee savings.
Previous merchant payment systems like mobile wallets have struggled to gain traction with consumers.
Analyst Optimism Drives Price Target Increase
Oppenheimer raised Amazon’s price target to $250 from $215 while maintaining an Outperform rating. The increase reflects higher margin expectations now more aligned with Wall Street consensus.
The firm noted e-commerce continues outperforming overall retail. Quarter-to-date non-store retailers grew 3.7% year-over-year versus retail excluding motor, parts, and gas at 2.7%.
Oppenheimer increased its fiscal 2025 and 2026 e-commerce gross margin forecasts by 562 and 187 basis points to 9.1% and 10.5% respectively. The firm also raised consolidated EBIT margin estimates by 91 and 90 basis points to 11.4% and 12.8%.
The new $250 price target implies a valuation of 9.5 times 2026 estimated AWS revenue. It also represents 5.0 times 2026 estimated e-commerce gross profit or 23 times 2026 estimated EBIT.
Amazon maintained unchanged estimates for Amazon Web Services. Oppenheimer expects a modest second-half ramp as capacity becomes available.
Wall Street Remains Bullish
Wall Street analysts show strong optimism about Amazon’s prospects. Of 53 analysts covering the stock, 45 rate it a “Strong Buy” and six assign a “Moderate Buy” rating.
Only two analysts recommend holding the stock. This translates to a consensus “Strong Buy” rating.
The mean price target for Amazon stock is $241.73. This implies 14.7% upside from current levels around $210.
Analysts expect a 12.15% year-over-year increase in GAAP earnings per share to $6.20 for fiscal 2025. Revenue is expected to grow 8.94% year-over-year to $694.99 billion.
Amazon’s leadership in cloud computing and e-commerce positions the company well for long-term growth. The company continues investing heavily in AI and cloud infrastructure.
CEO Andy Jassy highlighted the company’s extensive integration of generative AI across operations. He indicated AI integration might reduce Amazon’s corporate workforce as efficiency gains replace some current roles.
Amazon is also extending its annual Prime Day event to four days in 2025. This doubles the shopping time for members with 96 hours of deals across various categories.
The company is requiring some corporate employees to relocate to cities like Seattle and Arlington, Virginia to be closer to managers and teams.
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