Cantor Fitzgerald maintains Amazon stock overweight, $270 target
Investing.com
Published Feb 24, 2025 09:46AM ET
On Monday, Cantor Fitzgerald reaffirmed its Overweight rating and $270.00 price target for Amazon.com stock (NASDAQ:AMZN), currently trading at $215.95 with a market capitalization of $2.29 trillion, following a report on Anthropic's financial outlook. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $207 to $306, suggesting potential upside. Cantor Fitzgerald's analyst highlighted the potential impact of Anthropic on Amazon Web Services (AWS) revenue, citing the AI company's status as a major AWS customer for both training and inference processes.
Last week, it was reported that Anthropic, an AI firm that secured Amazon's $4 billion investment in November 2024, is forecasted to bolster AWS revenues in the coming years. Amazon's investment positioned it as Anthropic's primary cloud and training partner. Anthropic plans to use a substantial number of Trainium 2 instances to train its Claude models throughout 2025. InvestingPro analysis shows Amazon's robust revenue growth of 11% in the last twelve months, with total revenue reaching $638 billion.
While specific financial details from Anthropic's recent fundraising efforts in January are limited, the analyst's estimates suggest that Anthropic could contribute approximately 3% to AWS's revenues in the fiscal year 2025 and 5% in the fiscal year 2026. This marks an increase from a 2% contribution in the previous year.
The analyst noted that although the projected revenue from Anthropic represents a decent increase, it may not significantly accelerate AWS's overall growth. The analysis is based on sparse financial projections from Anthropic, and involves several assumptions. InvestingPro data indicates Amazon is currently trading near its Fair Value, with a strong financial health score and 12 additional ProTips available to subscribers, including detailed insights on valuation metrics and growth potential.
Amazon's strategic investment in Anthropic underscores the e-commerce giant's commitment to expanding its AI capabilities and cloud computing services. As AWS continues to grow, partnerships with AI-focused companies like Anthropic are likely to play a role in shaping its revenue streams. The company maintains a healthy balance sheet with moderate debt levels and strong cash flows, as revealed in the comprehensive Pro Research Report available on InvestingPro, which provides deep-dive analysis of Amazon's financial position and growth prospects.
In other recent news, Amazon.com has been at the center of several notable developments. TD Cowen has reiterated a Buy rating for Amazon, with a price target of $265, emphasizing the growth potential of Amazon Web Services (AWS). The firm projects AWS's GenAI revenue to increase significantly, expecting it to reach $56.3 billion by 2030. In a strategic move, Amazon MGM Studios has formed a joint venture to manage the James Bond franchise rights, gaining creative control over future productions. This follows Amazon's acquisition of MGM in 2022, which included a vast film and TV catalog.
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Additionally, Amazon's AWS is collaborating with STMicroelectronics to develop a new AI-focused computer chip aimed at the data center equipment market. This partnership reflects the growing demand for advanced AI infrastructure. Amazon Prime has also expanded its offerings by launching the FanDuel Sports Network as a subscription add-on, providing fans with access to premium sports content. These developments highlight Amazon's continued expansion across various sectors, from entertainment to technology infrastructure.
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Written By: Investing.com
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