As Amazon.com, Inc. (NASDAQ: Price AMZN) shares should close June in the red, Justin Post, an analyst at Bank of America Corp. (NYSE: BAC), has reiterated his bullish sentiment on Amazon stock.
The Post maintained its ‘Buy’ rating on Amazon stock, according to a note to clients reviewed by Finbold on June 30. The Wall Street analyst maintained his 12-month price target for AMZN. property at $310.00, which means more than 29%.
The reconfirmation comes after Amazon announced a 20% increase in the price of EC2 (Elastic Compute Cloud) Power Limits for Machine Learning, effective July 1. The Post emphasized that this move, following a 15% increase in January, is expected to add 1-2 percent to the growth of AWS for the second half and continue to advance the sector.
He too to point to the strong tailwinds of AMZN shares, driven by AI stock boost. Additionally, the AWS and OpenAI partnership brings OpenAI models to Bedrock.
The Post highlighted the rise of OpenAI’s $38 billion commitment as another big driver of AMZN shares. He cited the initial announcement of Anthropic’s $100 billion commitment on AWS as a major boost to Amazon stock.
Amazon’s pricing and performance forecasts
Following the Post’s outlook on Amazon’s stock over the next 12 months, the company’s shares have received strong buys from 45 Wall Street analysts over the past three months, as data from TipRanks. As such, Amazon’s price forecast stood at around $319.24.
At the time of reporting, Amazon stock traded at around $239.6, up 5.78% year to date (YTD). With 10.76 billion shares outstanding, the company had a market capitalization of approximately $2.58 trillion.
The company’s stock market is likely to grow significantly over the next 12 months as strong forecasts from Wall Street analysts can give investors confidence.
