Amazon.com, Inc. (NASDAQ:AMZN) received a strong endorsement from Piper Sandler on December 3, 2023, as analyst Tom Champion reiterated an Overweight rating for the stock, setting a price target of $233.00. This optimistic outlook is attributed to the anticipated boost from the upcoming holiday season and the growing momentum within Amazon Web Services (AWS).
The firm highlighted data released by Adobe, which reported significant growth in consumer spending during the Black Friday to Cyber Monday period. Overall holiday spending for 2025 is projected to increase by approximately 5%, a positive indicator given the challenging comparisons with the previous year. Champion expressed confidence in these results, stating, “A good result in our view given tough compares with ’24.”
In addition to consumer spending trends, Piper Sandler noted the implications of this data for companies focused on advertising. Amazon’s advertising division is expected to benefit from the holiday spending surge, contributing to its revenue growth.
Strengthening AWS Momentum
The report also addressed developments in AWS, particularly during the recent re:Invent 2025 conference. Piper Sandler praised AWS CEO Garman for his keynote presentation, which emphasized the scale and innovative hardware and product developments within the cloud computing sector. Champion described the arrival of the “Agentic platform era” as a pivotal moment for AWS, further reinforcing the company’s strong competitive position in the market.
While Piper Sandler acknowledges potential risks associated with investing in Amazon, they maintain a strong conviction in the stock’s prospects. Champion remarked on the broader landscape of AI stocks and suggested that while Amazon has merit as an investment, there are other AI-focused companies that may present higher return potential within a shorter time frame.
As the holiday season approaches, investor sentiment around Amazon remains favorable, bolstered by positive spending forecasts and robust performance in its cloud services division. The combination of these factors positions Amazon well for continued growth as it navigates the competitive e-commerce and cloud computing landscapes.
With the holiday season just around the corner, all eyes will be on Amazon to see how it capitalizes on these opportunities. The market will also be watching for updates on AWS’s developments, which could further enhance Amazon’s growth trajectory in 2025 and beyond.
