Wall Street’s banner year in 2024 lifted a bunch of stocks to record highs — including Amazon (AMZN), which hit a new high of $233 on Dec. 16, 2024. Shares of the online retail giant have since fallen back to around $219 but are still up nearly 45% over the past year.
Most stock and investment experts expect Amazon to keep surging in 2025, though at maybe a slower pace than last year. A recent analysis from Zacks found that of the 50 brokers who make up its average broker recommendation, 46 rate Amazon a “Strong Buy” and three rate it a “Buy.” Only one rates it a “Hold.” These ratings put Amazon firmly in the “bullish” category.
Much of the enthusiasm has to do with Amazon’s continued dominance in the online retail market along with growth in other business units, according to Edward Corona, a Florida-based trader and publisher of The Options Oracle Newsletter.
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“Amazon’s dominance in e-commerce and cloud computing keeps it in a league of its own,” Corona told GOBankingRates.
So considering Amazon’s recent performance, where will its stock go in 2025 — and what will contribute to the stock’s movement?
Also see five stocks to buy if you already own Amazon.
Drivers of Amazon’s Stock Performance
Here are three key drivers of Amazon’s stock performance, according to 24/7 Wall Street.
- E-commerce success: Although e-commerce makes up only about 15% of Amazon’s current retail sales, it’s become an increasingly important growth driver.
- Amazon Web Services: This part of the business is expected to reach $100 billion in total sales this year, although its 13% year-over-year growth lags behind rival cloud services, such as Microsoft’s Azure and Google’s Cloud. As 24/7 Wall Street noted, Amazon runs the risk of falling behind Microsoft before 2030 if it doesn’t stop losing market share.
- Advertising: Advertising has the ability to be “another high-margin business line” for Amazon, according to 24/7 Wall Street.
Investors and analysts will keep a close eye on how the above business units perform. In the meantime, Amazon’s stock price seems poised for continued growth in 2025. Here’s a look at the expected trading range, according to investing experts.
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Projected Highs
Anthony Grosso, a New York-based financial strategist and mortgage loan originator, expects Amazon to “outperform” in 2025 and projects that the stock price could reach as high as $280. The main wild cards are how the economy performs and how consumers deal with increasing credit card debt and delinquency rates.
“As consumers start to scale back, I think this will be felt in all retailers, with brick-and-mortar feeling it the hardest,” Grosso told GOBankingRates.
His upper-end projection for Amazon aligns with those of other experts. Corona provided an upper range of $270 a share for the stock in 2025, while Zacks has the highest price target from an analyst at $290.
In a recent blog for 24/7 Wall Street, investor and former analyst Joel South listed a 2025 price target of $287 for Amazon.
Projected Lows
While the general consensus is that Amazon’s stock price is primed for solid gains this year, there could be scenarios in which shares head in the other direction.
“Amazon always has a strategic advantage,” Grosso said. “It’s a long year ahead, but if the winds turn against the economy, we would be looking at the $175 range.”
Corona expects Amazon’s biggest potential headwind to be government regulation. His lower range for the stock is $230 in 2025.
“Governments have been eyeing Amazon’s size and influence for years,” Corona said. “Any major changes could create challenges, but Amazon has proven resilient before.”
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This article originally appeared on GOBankingRates.com: 4 Investing Experts Predict How High Amazon Stock Will Go in 2025
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
