Piper Sandler has reaffirmed its Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN) and set a price target of $233.00. Analyst Tom Champion communicated this view on December 3, 2023, citing positive trends in both the upcoming holiday season and the momentum of Amazon Web Services (AWS).
The firm highlighted data from Adobe, which indicated a strong performance during the Black Friday to Cyber Monday shopping period. Total holiday spending for 2025 is projected to grow by approximately 5%, which Piper Sandler views as a favorable outcome, especially given the challenging comparisons from 2024. Champion stated, “Adobe data released today suggests solid Black Friday to Cyber Monday growth and total ’25 holiday season spend growth projected at ~5%. A good result in our view given tough compares with ’24.”
Positive holiday spending data is particularly encouraging for advertising-focused companies, which is beneficial for Amazon’s expanding advertising business. This segment has been a critical growth driver for the company, further enhancing its revenue potential.
Piper Sandler also evaluated the recent AWS re:Invent 2025 event, where Garman, the CEO of AWS, delivered a keynote address. The firm praised the presentation, which emphasized AWS’s scale, new hardware, product developments, and the launch of the Agentic platform era. Champion reiterated the Overweight rating following the event, stating, “We were impressed with AWS CEO Garman’s re:Invent keynote highlighting scale, hardware and new product developments, plus the arrival of the Agentic platform era.”
Amazon.com, Inc. is a prominent technology company that offers a diverse range of services, including e-commerce, cloud computing, digital streaming, and artificial intelligence solutions. While Piper Sandler acknowledges the risks associated with investing in AMZN, the firm maintains a positive outlook based on the company’s current market position and growth prospects.
Although there are many AI stocks that show potential for higher returns, Piper Sandler believes that Amazon holds a unique position in the market, particularly in light of its recent performance and strategic initiatives. Investors looking for promising opportunities in the AI sector will find Amazon’s trajectory worth monitoring as the holiday season approaches.
As the company continues to innovate and expand its service offerings, its ability to capitalize on holiday spending and AWS growth will be crucial in maintaining investor confidence and achieving financial objectives.
