Amazon.com, Inc. (AMZN) Among the 10 Goldman Sachs Tech Stocks to Buy

Amazon.com, Inc. (AMZN) Among the 10 Goldman Sachs Tech Stocks to Buy

  • 25.03.2025 15:23
  • msn.com
  • Keywords: AI

Amazon.com (AMZN) is highlighted as a top tech stock by Goldman Sachs, driven by strong sales growth and AI investments. Despite its bullish outlook, some analysts believe other AI stocks may offer greater returns sooner.

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Amazon.com, Inc.

Amazon.com, Inc.

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Analyst rating: Strong buy

Amazon is expanding its AI initiatives and reported strong financial results.

Context

Analysis of Amazon.com (AMZN) Business Insights and Market Implications

Company Overview

  • Multinational technology company specializing in e-commerce, cloud computing, digital streaming, and artificial intelligence.
  • Evolved from an online bookstore into a global conglomerate offering products like consumer electronics, apparel, and cloud services through Amazon Web Services (AWS).

Financial Performance

  • 2024 net sales: $638.0 billion, up 11% year-over-year.
  • Q4 2024 net sales: $187.8 billion, a 10% increase.
  • Net income: Nearly doubled to $59.2 billion ($5.53 per share), compared to $30.4 billion ($2.90 per share) in 2023.

Strategic Initiatives

  • AI Expansion: Launched a new "AI Alexa" product at a New York event, signaling increased focus on AI-driven innovations.
  • AWS and AI Investment: Plans over $100 billion in capital expenditures for 2025, prioritizing AWS and AI to balance long-term growth with near-term profitability pressures.

Analyst Sentiment

  • Goldman Sachs ranking: Amazon ranks first among their list of "10 tech stocks to buy."
  • JMP Securities rating: Maintained a "Market Outperform" rating with a price target of $285.
  • Consensus 12-month target: $267.98, suggesting a potential 34.8% upside.

Competitive Landscape

  • While Amazon is recognized for its growth potential, analysts highlight that AI-focused stocks may offer higher returns in the short term compared to broader tech giants like AMZN.

Market Implications

  • Long-term growth: Heavy investment in AWS and AI positions Amazon for sustained expansion in cloud computing and artificial intelligence.
  • Near-term pressures: Balancing capital expenditures with profitability could impact short-term financial performance.
  • AI-driven innovation: The launch of "AI Alexa" underscores Amazon's commitment to leveraging AI across its product ecosystem.

Industry Impact

  • Amazon's strategic focus on AI and cloud services reinforces its dominance in key tech markets, while also driving competition among other tech companies in these sectors.