Amazon (AMZN) Price Target Slashed by Investment Bank, But Bullish Outlook Maintained

Investment bank Piper Sandler today cut its price target on Amazon (AMZN) to $215 from $265 but kept an Overweight rating on the name.

Piper expects the tech giant to provide fairly upbeat guidance when it reports its first-quarter results within the next few weeks.

A customer entering an internet retail store, illustrating the convenience of online shopping.

A Look at Piper’s Estimates for AMZN

Piper expects Amazon Web Services (AWS), the company’s cloud-infrastructure unit, to increase its revenue by 17% in 2025. That forecast is in-line with analysts’ average estimate.  Similarly, Piper predicted that the company would report Q1 sales of $153 billion, versus analysts’ average estimate of $155 billion.

The investment bank estimates that AMZN will provide Q2 sales guidance which implies revenue growth of 6%-10% versus the same period a year earlier.

On the negative side, Piper slightly reduced its forecasts of the company’s ad revenue and the sales of its online stores. The investment bank also slightly lowered its estimates of the revenue that the firm will maintain from providing services.

More About AMZN

Analysts on average expect the company’s 2025 earnings per share to come in at $6.32, up from $5.53 in 2024.

In the last month, the shares are down 6%, while they have fallen 18% in the last three months.

While we acknowledge the potential of AMZN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.