BMO Capital reiterated an Outperform rating and a $304.00 price target on Amazon.com (NASDAQ:AMZN) as the company prepares to report fourth-quarter 2025 results, which the firm expects in just two days on February 5. That target implies about a 25% upside relative to the cited recent share price of $242.22 and sits comfortably within the wider analyst target range of $230 to $360.
In research commentary, BMO analyst Brian J. Pitz highlighted "accelerating Cloud and resilient consumer" trends as the principal underpinnings of the firm’s outlook for the e-commerce and cloud computing company. BMO’s channel checks continue to indicate growth acceleration in Amazon Web Services (AWS), the analyst said, although he cautioned that competition and capacity constraints could limit additional upside.
The firm pointed to Amazon’s recent revenue performance as context for its view. Over the last twelve months, Amazon posted 11.48% revenue growth, and the company has delivered an 18% compound annual growth rate in revenue over the prior five years, according to InvestingPro data cited by BMO.
Retail activity at Amazon remains healthy even as consumer confidence has moved in the opposite direction, a divergence BMO described as an "unsustainable macro" environment. That paradox has led the firm to keep a measured posture on Amazon’s retail operations as the company heads into 2026, even while maintaining a positive overall rating.
BMO retained its revenue and operating income estimates for the company and expects Amazon’s advertising business to be the fastest-growing segment in the fourth quarter of 2025. The firm indicated that its current estimates already reflect much of the potential upside from advertising growth.
Within its coverage universe, BMO continues to list Amazon as a "Top Pick," keeping both its Outperform rating and the $304 target price on the stock. The firm’s view is supported in part by Amazon’s scale in the Broadline Retail industry and the company’s sizable market capitalization, which was cited at $2.59 trillion. InvestingPro’s overall financial health score for Amazon was noted as "GREAT."
Other broker commentary ahead of the same earnings release echoed a generally bullish tone. Evercore ISI repeated an Outperform rating and forecasted fourth-quarter revenue of $211 billion, a 12% year-over-year increase, and an operating income of $24.6 billion. Monness, Crespi, Hardt also maintained a Buy rating, projecting roughly $211.30 billion in revenue, $1.98 in earnings per share and a 12.1% operating margin. Jefferies similarly reiterated a Buy rating and described Amazon’s valuation as low versus historical norms.
Operational developments noted alongside broker views included reported consumer benefits and service expansions in 2025: U.S. Prime members reportedly saved an average of $550 on fast, free delivery that year, and Amazon expanded its Same-Day Delivery service to more than 4,000 locations.
The wider note also referenced unrelated corporate activity involving Marvell and Celestial AI: Marvell completed its acquisition of Celestial AI, and RBC Capital kept an Outperform rating with a $105.00 price target on that name, a view RBC said aligns with Marvell’s management guidance.
As Amazon approaches its fourth-quarter report, BMO’s reaffirmation underscores the firm’s expectation that AWS momentum and advertising strength will continue to support the company, balanced against potential headwinds in retail tied to macroeconomic conditions. Several other firms have likewise held to positive ratings and materially similar forecasts ahead of the release.