Goldman Sachs Group Inc (NYSE:GS, ETR:GOS) analysts have raised their 12-month price target for Amazon.com Inc (NASDAQ:AMZN) shares to $240 from $220, reiterating a ‘Buy’ rating on the eCommerce giant and emphasizing a constructive multi-year outlook across the company’s core businesses.
The upward revision follows Amazon’s second quarter earnings report, which largely exceeded expectations and reinforced analyst confidence in the company’s positioning across eCommerce, cloud, and advertising.
“We see Amazon as well positioned for future outperformance,” Goldman analysts wrote. They believe Amazon is well-positioned due to three key drivers, firstly, that eCommerce margins are improving thanks to increased volume and a more streamlined logistics network that’s lowering unit costs.
They also pointed to the advertising segment expanding efficiently with strong profitability and expect AWS to gain from long-term structural demand as enterprise needs evolve, particularly with momentum from the growing adoption of generative AI workloads.
Amazon Web Services (AWS) posted 17.5% year-over-year growth in Q2, slightly ahead of estimates, but Goldman noted that investor focus remains fixed on AWS’s position within the expanding AI ecosystem.
“Investors likely wanted more granularity on framing how AWS is positioned relative to the evolving AI landscape,” the analysts wrote.
While near-term margin pressures persist, Goldman expects AWS to play a central role in driving sentiment and revenue growth into 2026, supported by easing capacity constraints and increased demand for both AI and non-AI workloads. Despite some uncertainty, analysts see AWS as undervalued and capable of sustaining strong performance.
Amazon’s eCommerce unit delivered solid results, aided by logistics improvements such as shorter delivery routes and fewer handling steps.
“The Amazon consumer remains healthy,” analysts said, noting that tariffs have had a limited impact so far. These gains are expected to support continued margin expansion over time, especially as Amazon grows its presence in the everyday essentials and perishables space.
Advertising remained a standout, with 8% year-over-year growth led by sponsored products and video. Goldman called it “one of Amazon’s most efficient and profitable revenue streams.”
“We reiterate our ‘Buy’ rating, adjust our forward operating estimates for this earnings report, and move our 12-month PT from $220 to $240 on the back of these estimate changes,” the analysts concluded.
Shares of Amazon traded hands at $222 on Friday afternoon, up modestly in the year-to-date.