Amazon.com, Inc. (NASDAQ:AMZN) has received a bullish price target of $248 from BofA Securities, thanks to its successful Prime Day event.
What Happened: BofA Securities analyst Justin Post has reaffirmed a Buy rating for Amazon’s stock, setting a $248 price target. This decision follows an evaluation of the Prime Day performance, as reported by Insider Monkey on Thursday.
The firm’s analysis indicates that Prime Day generated a staggering $21.4 billion in Gross Merchandise Value (GMV), marking a 60% increase from the previous year.
Despite the event lasting twice as long as in 2024, the average sales dropped by 20%, while the overall sales increased. The analysis also predicts a 55% year-over-year growth in first-party sales, reaching $11.45 billion, and a 67% year-over-year growth in third-party sales, reaching $9.95 billion.
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Why It Matters: This bullish outlook comes after a series of events that had initially cast a shadow on Amazon’s prospects. Early Prime Day sales figures were reported to be lower than the previous year’s, causing a dip in the company’s stock.
However, this latest analysis of the event’s performance has turned the tide, leading to a more optimistic forecast for the company.
Moreover, Amazon’s commitment to investing billions more into Anthropic, an AI model builder, and the continuous selling of Amazon stock by its founder and executive chairman, Jeff Bezos, have been notable occurrences in the company’s recent history.
Price Action: Amazon ended Thursday at $223.88, gaining 0.31%, and inched up another 0.23% in pre-market trading, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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