Wall Street sets Amazon stock price target for next 12 months

After a rough month in the market, Amazon (NASDAQ: AMZN) received a confidence boost on February 18 as Bernstein reaffirmed its bullish stance. Analyst Mark Shmulik reiterated a Buy rating and set a 12-month price target of $265, implying roughly 30% upside from the cited price of $203.59.

Bernstein’s latest view

Shmulik’s current target of $265 comes after an early-February reduction from $300, a shift he attributed to mixed execution: continued strength in Amazon Web Services (AWS) contrasted with less impressive returns from recent large-scale investments. The new note emphasizes Amazon’s long-term positioning and its potential to be a prime beneficiary of the accelerating artificial intelligence (AI) cycle.

Recent stock performance

Despite the renewed optimism, AMZN shares are down 11.87% over the last month and 11.82% year to date. Even with a rebound in the second half of the year, the stock remains 10.19% lower on a 12-month basis. The pullback has fueled arguments that the stock may be oversold relative to its fundamentals and long-run prospects.

Institutional moves in focus

This show of confidence arrives amid 13F filing season. Notably, during his final quarter as CEO of Berkshire Hathaway, Warren Buffett reduced his AMZN position by about $1.7 billion—nearly 80%. The contrast between stepped-up Wall Street endorsements and selective institutional trimming has sharpened attention on how the next few quarters unfold for Amazon’s core businesses.

Broader Wall Street consensus

While market volatility and recent turbulence in AI-related tech have pressured the stock, the broader Street view remains constructive. Over the last three months, AMZN has been overwhelmingly rated a “Strong Buy,” and the average 12-month price target sits near $282.14—about 38% above the cited price level. This consensus reflects expectations for continued growth in AWS, efficiency gains across retail and logistics, and expanding monetization in advertising and other high-margin segments.

What to watch next

• Execution in AWS and AI tools: Signs of accelerating enterprise adoption and profitability.
• Retail margins and logistics efficiency: Progress on cost control, delivery speed, and automation.
• Advertising growth: Resilience of ad demand and contribution to operating income.
• Capital allocation: Pace and payoff of major investments relative to revenue and margin expansion.

Bottom line

Bernstein’s reaffirmed Buy rating and $265 target underline confidence in Amazon’s long-term trajectory despite near-term stock weakness. With consensus estimates pointing even higher over the next year, investors will be watching upcoming results and operating updates for evidence that recent investments can translate into durable growth and improved profitability.