Bernstein has raised its price target for Amazon.com Inc. (NASDAQ: AMZN) to $265 from $235, maintaining an “Outperform” rating. The revised target reflects Amazon's focus on sustained growth, operational efficiency, and strong performance across its business units.

Key Highlights:

1. Business Segment Growth:

   • Core areas like retail, AWS, and advertising are driving Amazon's robust outlook.
   • Advertising revenue is projected to grow ~20% annually due to its scalability and profitability.

2. Operational Efficiency:

   • Cost-cutting initiatives, such as lowering inbound fees and increasing seller adoption, are expected to bolster margins, forecasted to rise to 11.4% by 2025.

3. Valuation and Future Prospects:

   • Despite a 55% YTD gain, Amazon's valuation remains below historical averages, leaving room for a further re-rating.

Supporting Insights

• Use the Financial Growth API to explore Amazon's EBIT trends and operational cost improvements.
• Dive into the Revenue Product Segmentation API for an in-depth analysis of Amazon's revenue streams across retail, AWS, and advertising.