Amazon shares have already made impressive gains in 2024 – but TD Cowen analyst John Blackledge also sees strong potential for further price growth in 2025. These are his reasons.
• John Blackledge bullish on Amazon shares
• Analyst calls Amazon stock a top pick for investors
• Household goods drive share price growth
Amazon shares achieved significant price gains in 2024. But despite the strong price increase, TD Cowen analyst John Blackledge still sees further potential for the US giant’s shares, according to MarketWatch. Blackledge emphasizes that many investors are overlooking important growth drivers and that this potential could develop even more in the coming years.
Analyst bullish on Amazon shares: Household goods are driving growth
An important growth driver for Amazon could be further market penetration in inexpensive household goods. “We view delivery speed as a positive factor driving increasing penetration and market penetration for low-cost, low average price (ASP) products,” Blackledge wrote in his analysis, according to MarketWatch, while also naming Amazon stock as his top pick for 2025. Around 80 to 90 percent of household goods would fall into this price category, Blackledge continued.
Amazon could not only expand its market share in this segment, but also increase shopping cart sizes. According to Blackledge, this would have a positive impact on gross merchandise volume (GMV), which represents the total value of products purchased on the Amazon platform. The analyst estimates that GMV could increase by ten percent in 2025 and will continue to grow at an annual growth rate of ten percent until 2030. This could result in a total value of up to $1.24 trillion by 2030.
In addition, the analyst expects Amazon to benefit from further efficiency gains in fulfillment costs in 2025. Through optimized processes, the company could reduce costs and thus further increase profitability. In addition, the advertising measures surrounding Amazon Prime Video could become an important growth driver. Particularly high-margin income from this area could further have a positive impact on the company’s results.
Price rally ahead? The potential of generative AI
According to MarketWatch, Blackledge sees further great growth potential in Amazon’s cloud computing business, particularly in the Amazon Web Services (AWS) area. The analyst forecasts cloud revenue growth of 21 percent in 2025, boosted by the migration of enterprise workloads and the growing offering of generative artificial intelligence (GenAI). If this prediction comes true, Amazon would see its second consecutive year of acceleration in the AWS space.
Amazon shares 2025 – top pick for investors?
According to MarketWatch, Blackledge sees the stock as a clear “top pick” among major Internet stocks and has raised its price target to $265. The analyst continues to recommend buying Amazon shares and expects the company to continue to benefit in the coming years. How the share actually develops remains to be seen.
Editorial team finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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