Amazon stock and shares of Meta Platforms got price-target hikes from JPMorgan analysts Wednesday, who cited a combination of tariff relief, lower recession risk and company performance for the more positive view. Amazon stock posted a slight gain while Meta pushed higher into a buy zone.
JPMorgan's internet sector analysts led by Doug Anmuth said they cut targets for the majority of stocks in their coverage following President Donald Trump's April 2 "Liberation Day" tariff announcement. Some of those cuts were revised after first quarter earnings last month. But JPMorgan's team now expects some internet stocks can achieve higher price-to-earnings multiples following the deal to lower tariffs on China.
For Amazon, Anmuth upped his target to 240 from 225. Meanwhile, Meta stock was lifted to 735 to 675. Both stocks are rated a positive overweight by JPMorgan analysts. Amazon and Meta also lead their list of "Best Ideas."
On the stock market today, Amazon stock gained nearly 1% to close at 207.23. Meta stock gained 3.2% to close at 687.95.
Amazon Stock A 'Best Idea' For JPMorgan
Amazon stock placed at the top of the Best Ideas list. JPMorgan expects Amazon Web Services to accelerate sales growth in the second half of the year. Its e-commerce business, in the meantime, is still benefiting from a "secular shift" from in-store to online shopping, the note said.
"Amazon is the most diversified mega-cap across revenue/profit and has numerous large growth opportunities," Anmuth wrote. He cited Amazon's advertising business, Project Kuiper satellite internet, its grocery business, logistics offering, Prime Video and other businesses.
Some investors will push back on the pick, Anmuth wrote, by noting that Amazon has the most direct tariff exposure among internet stocks, as well as risk from shifts in broader economy.
Meta Stock: Core Business Seen Supporting AI Investments
Meanwhile, Meta stock ranked second among JPMorgan's Best Ideas list for internet stocks.
For the Facebook parent company, Anmuth wrote, "advertising and macro(economic) trends are stable, with AI advertising benefits."
One "offset" is the Llama 4 launch headwinds, the note said. The Wall Street Journal reported last month that Meta had delayed the launch of an update for the largest version of its Llama large language model, which powers its generative AI offerings.
The area for investor pushback, the note added, is that Meta is significantly increasing its capital expenditures as it builds out AI computing capacity. But the analysts expect that the strength of Meta's core business can support its "AI investment ramp."
The price target hikes from JPMorgan came as part of a broader look at the internet sector from the analysts. JPMorgan's internet stock analysts also raised their price targets for Spotify, to 730 from 670; Booking Holdings stock to 6,000 from 5,360, and eBay to 66 from 60, among others.
Amazon Stock In Base; Meta Stock Recent Breakout
Amazon stock has been trading in a tight range since rocketing higher the day of the May 12 U.S.-China tariff agreement. The IBD MarketSurge Pattern Recognition tool shows Amazon stock in a cup-with-handle base with a 214.84 buy point.
Meta stock rallied on Monday to break out past a 662.67 cup-with-handle buy point, according to MarketSurge. That was after a report that the company will user AI to offer fully automated advertising campaigns by late next year.
Shares pulled back slightly Tuesday, as Meta announced a power purchasing agreement with a nuclear energy facility to fuel its data centers.
With Wednesday's action, Meta stock is hovering within a 5% buy zone above the cup-with-handle entry.
Meta's shares are ahead 16% overall in 2025, including Wednesday's gains. That is the best overall year-to-date share price performance among the Magnificent Seven stocks. Amazon stock is down 5.5% year-to-date.
