Amazon (NASDAQ: AMZN) stock experienced a slight decline during intraday trading on Wednesday. However, TD Cowen maintained its bullish outlook on the company.
TD Cowen has reaffirmed its optimistic outlook on Amazon (AMZN), maintaining a Buy rating and a price target of $225.00. This endorsement follows Amazon’s inaugural advertising Upfront event on May 14, where the company showcased its Prime Video advertising capabilities and introduced new offerings in film, television, and live sports.
The analysts from TD Cowen noted that Amazon’s ad-supported content has reached 115 million U.S. viewers, prompting a reassessment of the revenue potential from advertising on Prime Video. Based on their analysis, the analysts estimate that Prime Video could generate around $2.2 billion in annualized ad revenue in the United States alone. This forecast represents a crucial factor for TD Cowen’s decision to maintain its “Buy” rating and set a price target of $225 for Amazon’s stock.
The firm emphasized the significant contribution that Amazon’s advertising business, particularly through Prime Video, could make to the company’s overall financial performance.
Analysts at TD Cowen believe Amazon will continue to grow steadily, as indicated by their unchanged price target. They particularly highlight Amazon’s increasing presence in advertising and its diverse content offerings as key factors driving this growth. Despite changes and competition in the digital advertising sector, TD Cowen remains confident in Amazon’s ability to create value for its shareholders due to its current strategy and market position.
Amazon (NASDAQ: AMZN) Stock Movement
AMZN stock dropped 0.58% to close at $185.99 on Wednesday. Its value decreased by 1.07% this week. Trading activity has witnessed 75,459,928 (75.45 million) shares changing hands, well above the average daily volume of 40.74 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
