Cantor Fitzgerald analysts reiterated an Overweight rating on Amazon.com (NASDAQ:AMZN), maintaining a price target of $270 on the stock. The outlook highlights Amazon’s robust positioning among mega-cap names, with potential upside in key metrics for both the fourth quarter of 2024 and the first quarter of 2025.

Amazon Web Services (AWS) is expected to play a pivotal role in the company’s performance, benefiting from accelerated growth in inference workloads driven by advancements in the large language model (LLM) AI layer. With a competitive infrastructure stack and deep customer relationships, AWS is poised to capture a significant share of this growing market, bolstering its growth trajectory in the cloud computing space.

In the retail segment, Amazon is set to capitalize on fixed-cost leverage, which is anticipated to contribute to margin expansion throughout 2025. According to the analysts, this improvement is likely to persist even as the company faces incremental expenses related to the Kuiper satellite initiative, showcasing the resilience of its core operations. Despite investor sentiment already reflecting a favorable near-term outlook, Amazon offers multiple growth catalysts in the coming year.