Amazon.com Inc. (NASDAQ: AMZN) has reaffirmed its status as a favored investment opportunity among large-cap e-commerce stocks, with major financial analysts underscoring its robust growth prospects. Recent research from Bank of America (BofA) highlighted Amazon as the institution’s top pick, citing projected market share gains driven by its expanding online grocery business and ongoing improvements in profit margins.
Amazon, a prominent technology company headquartered in Seattle and known for its diverse services in e-commerce, cloud computing, digital streaming, and artificial intelligence, continues to benefit from its sizeable user base and comprehensive digital ecosystem. BofA’s analysts emphasized that Amazon’s ongoing investments in infrastructure and capacity are expected to support future growth, along with the company’s potential to capitalize on tariff relief and onshoring trends within the U.S. economy.
As of October 19, 2025, Amazon shares were trading at $213.04, down 0.68% from the previous session. The day’s trading saw prices fluctuate between a low of $211.10 and a high of $214.80. Despite this minor dip, financial analysts remain optimistic. BofA has consistently maintained a "Buy" rating for Amazon and set a price target of $225 per share. In their April 2025 analysis, BofA pointed to Amazon’s price-to-earnings (P/E) ratio of 23 when projecting 2026 GAAP earnings. This metric closely aligns with Microsoft’s valuation and stands in contrast to Walmart’s higher P/E of 32, suggesting Amazon shares may offer more attractive upside potential with comparatively lower downside risk for investors. (Investing.com)
Other leading analysts have echoed these sentiments. In July 2025, Morgan Stanley increased its Amazon price target to $300 per share, projecting a 35% potential upside from prevailing price levels. The firm referenced an improving macroeconomic environment and anticipated momentum in Amazon Web Services (AWS) as major contributors to this optimistic forecast. (Investing.com)
Morgan Stanley further bolstered its support for Amazon in September 2025, naming the company its "Top Pick." Analyst Brian Nowak drew attention to Amazon’s continuing expansion in the U.S. fresh grocery sector, estimating that if Amazon captures just 1% of the $600 billion fresh and perishable goods market, it would add around 120 basis points to Amazon’s Gross Merchandise Volume (GMV) growth for 2026. (GuruFocus)
The positive outlook from both BofA and Morgan Stanley reflects broader confidence among financial institutions in Amazon’s long-term strategy and market leadership, particularly within e-commerce and the high-growth cloud computing sector. Amazon’s efforts to further integrate grocery offerings and leverage its existing infrastructure are seen as pivotal strategies to drive continued expansion and value creation for shareholders over the coming years.