Amazon shares rose 2.8% in Monday pre-market trading. TD Cowen analyst John Blackledge reiterated a Buy rating and established a $300 price target. The firm designated Amazon as a preferred large-cap pick.
Growth drivers include artificial intelligence tailwinds, advertising momentum, and margin expansion. Blackledge expects Amazon Web Services revenue to accelerate through 2025 and 2026. Rising demand for AI workloads will fuel this cloud growth.
Structural improvements in retail and high-margin advertising are also expected to boost performance. These factors are projected to drive Amazon's operating income to approximately $104 billion by 2026.