Amazon (AMZN) Stock Price Forecast Cut: Still Worth Investing?

Amazon stock (AMZN) opened Tuesday’s trading bell at $169.85 and climbed as much as 6% in the opening hours. The leading e-commerce giant is down 11% in the past month and nearly 20% year-to-date. It hit a high of $242 in early February but plunged below the $200 mark as Trump imposed tariffs. The trade wars have proven costly to the US stock market as more than $2 trillion worth of wealth was wiped away after Liberation Day.

Despite all of these obstacles, analysts remain mixed on whether to go bullish on AMZN shares. On April 16, BMO reiterated the stock as “Outperform” but lowered its price target from $280 to $235. The analyst told investors in a research note how the second half of 2025 is “increasingly uncertain” due to softened cloud demand in March, shaky macro environment, and reduced visibility.

Furthermore, Amazon (AMZN) could have a difficult time if the tariffs are not scrapped by Trump after the 90-day pause in July. The broader markets could enter a bearish phase, leading to price dips and overall stagnation of wealth. Investments from both retail and institutional funds could decline during the upcoming crash, eroding investors’ confidence in the markets.

On the other hand, AMZN also recently received a new $275 price target from Bank of America. According to the bank, it has experienced performance issues relative to competitors Walmart (WMT) and Microsoft (MSFT). However, they also noted that the company has strong fundamentals currently. Specifically, it is sporting a revenue growth of more than 11%. Moreover, it has shown strong prospects in AI growth, with its Amazon Web Services (AWS) cloud computing business still thriving.

Amazon looks to be putting its rough 2025 start in the rearview mirror. It’s AWS continues to outperform rival segments. The cloud unit posted $28.8 billion in Q4 2024 revenue, up 19% year over year, and delivered a 37% operating margin. For all of 2024, AWS revenue hit $107.6 billion, also up 19%. Additionally, Amazon’s ads business is another area with meaningful upside as of late. The company’s ad-supported Prime Video service and vast retail data remain underleveraged, meaning there is still time to back it before it becomes far more valuable.