Analyst Touts Amazon Stock as Prime Opportunity Before Earnings Release

Analyst Bullish on Amazon Despite Lackluster Performance

Amazon.com Inc.’s stock has reportedly shown minimal movement throughout 2025, but according to recent analyst commentary, this period of stagnation may soon end. Sources indicate that Benchmark analyst Daniel Kurnos has identified the e-commerce and cloud computing giant as a compelling investment opportunity ahead of its upcoming earnings report.

Analyst Bullish on Amazon Despite Lackluster Performance
“Must Add” Rating Defies Current Market Sentiment
Substantial Upside Potential Cited
Earnings Report Looms as Potential Catalyst

“Must Add” Rating Defies Current Market Sentiment

In a research note issued Wednesday, Kurnos reportedly characterized Amazon shares as a “must add” to investment portfolios, a position that analysts suggest runs counter to current market sentiment. This recommendation comes despite Amazon’s stock being the poorest performer among the so-called “Magnificent Seven” technology stocks this year.

The report states that Kurnos maintains his confidence that “the tide will turn sooner rather than later” for the retail and technology behemoth. According to the analysis, next week’s third-quarter earnings release could potentially serve as the catalyst needed to reverse the stock’s fortunes.

Substantial Upside Potential Cited

Benchmark has reportedly maintained its buy rating on Amazon shares along with a price target of $260, which analysts suggest represents approximately 19% upside from current trading levels. This projection indicates significant confidence in the company‘s ability to deliver strong financial results and forward guidance.

The positive outlook comes amid what sources describe as relatively flat performance for Amazon stock throughout 2025. Market observers suggest that investor enthusiasm may have tempered following the company’s massive gains in previous years, creating what some analysts perceive as a potential buying opportunity.

Earnings Report Looms as Potential Catalyst

According to reports, the upcoming quarterly earnings announcement represents a critical moment for Amazon to demonstrate continued growth across its diverse business segments. Market watchers will be closely monitoring performance in key areas including:

Amazon Web Services: The cloud computing division that has historically driven significant profitability
E-commerce Operations: Core retail business including third-party seller services and advertising
Advertising Revenue: The rapidly growing segment that has become increasingly important to overall financial performance
Cost Management: Ongoing efforts to streamline operations and improve margins

Analysts suggest that stronger-than-expected results in any of these key business areas could potentially reignite investor enthusiasm for the stock. The maintained price target reportedly reflects confidence that Amazon can deliver on these expectations despite broader market concerns about technology valuations and consumer spending.

As with all investment recommendations, analysts emphasize that individual investors should conduct their own research and consider their financial objectives before making investment decisions. The coming week’s earnings release will provide crucial data points for evaluating whether the optimistic analyst projections will materialize.