Source: Zhithon Finance

Recently, several Institutions Analysts released Research Reports, upgrading their ratings and Target Price. $Amazon (AMZN.US)$ The technology giant Amazon has recently made a significant move in Cloud Computing Services, further enhancing its Cloud Computing and AI technology positioning, with expected growth in the future. Additionally, Analysts indicated that the company's Return to Office (RTO) policy will also provide a Bullish factor for the stock's profit margin in 2025.

On January 7, Amazon announced that its Amazon Web Services (AWS) plans to invest about 11 billion dollars to expand its infrastructure in Georgia to support Cloud Computing and AI technology. The company stated in a statement: "Generative AI is driving increased demand for advanced cloud infrastructure and computing power, and AWS's investment will support the AI future of Georgia's datacenters."

Amazon stated that since 2010, it has invested 18.5 billion dollars in Georgia, contributing 20.1 billion dollars to the state's GDP. This latest investment is expected to create at least 550 job opportunities, marking another example of large tech companies' grand plans in the field of AI.

Amazon's CEO actively promotes Cloud Computing Service.

According to foreign media reports, it is expected that Amazon, $Microsoft (MSFT.US)$、 $Meta Platforms (META.US)$ and $Alphabet-A (GOOGL.US)$ will spend over 250 billion USD this year, mainly on AI infrastructure.

According to foreign media reports, in the first half of 2024, large tech giants' spending in these areas reached nearly 104 billion dollars, representing a year-on-year increase of 47%. Throughout the third quarter, this figure soared to 170 billion dollars, with a year-on-year increase of 56%.

Microsoft stated in a blog post on January 3 that the software giant expects to invest $80 billion to build datacenters capable of handling AI workloads by fiscal year 2025. More than half of the AI infrastructure spending is anticipated to occur in the USA.

AWS has undoubtedly brought returns for Amazon, generating $27.5 billion in revenue in the third quarter of 2024, a year-on-year increase of 19%. This is about one-sixth of Amazon's total revenue of $158.9 billion, which grew by 11% compared to the same period last year.

In October last year, during Amazon's third quarter earnings report conference call, CEO Andy Jassy told analysts: "Over the past four quarters, we have seen AWS's growth significantly accelerate again.

"The AWS team continues to make rapid progress in providing AI capabilities for customers to establish substantial AI businesses. In the past 18 months, the machine learning and (generative AI) features released by AWS are nearly twice as many as those of all other leading cloud providers combined."

Amazon is set to announce its quarterly performance next month, with the company's stock price rising approximately 53% year-on-year.

Cantor Fitzgerald raised its target price.

The investment firm has recently been releasing research reports on Amazon. Cantor Fitzgerald analyst Deepak Mathivanan raised Amazon's target price from $240 to $270 and affirmed a "Shareholding" rating for the stock. Amazon is one of the firm's top picks for its theme of accelerating AI deployment in 2025.

The company stated that despite emerging risks such as President Donald Trump's tariff proposals, the fundamental backdrop for Internet Plus-Related stocks will remain healthy as it enters 2025.

In addition, this Analyst stated that innovations in fields such as AI, autonomous Autos, Siasun Robot&Automation, and quantum computing are accelerating. He expects strong growth and margin expansion in digital advertising, E-Commerce, and mobile business by 2025.

Wedbush and Loop: Bullish on the stock's upward trend.

Wedbush Analyst Scott Devitt raised Amazon's Target Price from $250 to $260 and maintained an outperform rating for Amazon Stocks, while listing it as a preferred stock for 2025.

Devitt stated that investors underestimated AWS's operating profit growth rate and improvement trend, as the AWS Cloud Computing Service has accelerated growth for four consecutive quarters.

Amazon's operating profit growth ranks among the leaders in the Market Cap internet peers. Wedbush expects that by 2025, Amazon's operating profit will grow by 24% year-on-year, surpassing Google and Meta Platforms.

Loop Capital Analyst Rob Sanderson reiterated a Buy rating on Amazon and a Target Price of $275, predicting that the stock will rise further in 2025.

The company stated that in addition to expecting a long and exciting period of strong demand for AWS, the profitability outlook for Amazon's retail Business is also very favorable.

The company's "Return to Office (RTO)" policy, which requires employees to return to the office five days a week, is also effective in most regions. Sanderson noted that this will lead to some employee turnover, and the policy benefits may tilt towards high-salary employees. He mentioned that while this is difficult to quantify, it will drive margins in 2025.

According to GeekWire, Amazon's RTO policy has faced dissatisfaction from working parents, who place great importance on flexibility and cost-saving factors, and have become accustomed to years of remote and hybrid work.

In a statement to GeekWire, Amazon indicated that it recognizes that people sometimes need the flexibility to work from home. In such cases, "employees should communicate with their managers, just as they did before the pandemic."

The trend of returning to the office appears to be gaining momentum. On January 7, foreign media reported that JPMorgan is preparing to have all employees return to the office five days a week, ending the hybrid work options for thousands of employees.

Recent surveys show that 23% of companies in the USA require employees to work in the office five days a week. Most companies opt for a hybrid model, requiring employees to work three days a week in the office.

Meanwhile, a survey by Resume Builder found that one-fifth of employees are not complying with the company's RTO policy. 20% of employees indicated that if the company began to strictly enforce compliance policies, they would likely leave, and another 33% said they might also follow suit.

编辑/jayden