BMO Capital has raised its price target for Amazon.com (AMZN) to $310.00 from $304.00 while keeping an Outperform rating after reviewing the company's fourth-quarter 2025 financials. The new target sits above InvestingPro's stated Fair Value estimate, and analyst targets broadly span from $230 to $360. Amazon's shares trade at a price-to-earnings ratio of 31.5, underscoring the market's elevated expectations for the technology and retail conglomerate.
The upgrade centers on outperformance at Amazon Web Services. BMO highlighted a sequential acceleration of 400 basis points in AWS growth to 24% - the fastest growth rate since the third quarter of 2022 - which outpaced Street expectations by 2 percentage points. That cloud strength contributes materially to Amazon's overall revenue trajectory: the company delivered 12.4% revenue growth over the last twelve months, producing $716.9 billion in revenue during that period.
Advertising also showed robust performance. Amazon's ad business expanded 22% year-over-year excluding foreign exchange effects, a figure that was flat on a sequential basis yet beat consensus projections by one percentage point, according to BMO. The firm linked this resilience to new content and distribution partnerships, specifically naming Roku and Netflix, together with platform integrations involving Spotify and SiriusXM that have increased the demand-side platform's appeal to advertisers.
The retail operations posted balanced gains across channels. On an ex-FX basis, Amazon's online Stores revenue rose 8% year-over-year, Physical Stores climbed 5%, and third-party Seller Services increased 10% over the same interval. BMO pointed to the company's solid quarterly performance across these principal segments when reaffirming Amazon as a "Top Pick" within its coverage universe and when justifying the upward adjustment to the price target.
InvestingPro metrics cited by analysts indicate Amazon carries an overall financial health score of 2.84, classified as "GOOD," with notably strong profit metrics. InvestingPro commentary also places Amazon as a significant participant in the Broadline Retail industry, with attractive return potential over the past decade. The platform notes a Pro Research Report is available with additional analytical tips and data.
On the earnings front, Amazon's fourth-quarter 2025 results showed revenues that exceeded expectations, although the company marginally missed on earnings per share. Revenue came in slightly above the high end of the company's guidance range, and operating income topped consensus by 1% even after the inclusion of roughly $2.4 billion in one-time charges.
Market reactions among other sell-side analysts were mixed in nuance but generally constructive. Citizens analyst Andrew Boone reiterated a Market Outperform rating and maintained a $315 price target. Goldman Sachs shifted its target down to $280 from $300 but kept a Buy rating, citing the company's intensive investment phase. That investment cycle includes fiscal 2026 capital expenditure guidance of approximately $200 billion, with spending plans concentrated on cloud computing and eCommerce capabilities.
Ultimately, BMO's decision to increase its Amazon price target reflects a combination of accelerating cloud revenue growth, steady advertising momentum supported by new content and distribution partnerships, and consistent retail segment expansion. At the same time, investors and analysts continue to weigh the company's near-term EPS dynamics and the financial effects of substantial planned capital investments into fiscal 2026.
Market context: The firm-level targets and analyst views referenced here span a wide range, from $230 to $360, indicating differing assumptions about Amazon's growth trajectory and capital deployment. The company's reported P/E of 31.5 signals that the market is pricing in significant future earnings growth.