The “Magnificent 7” stocks that headed into 2025 on the back of a stellar rally have whipsawed this year. While they have bounced off their 2025 lows, only Meta Platforms (META) and Microsoft (MSFT) have turned green for the year based on May 6 closing prices.

All the constituents of the group except for Nvidia (NVDA) have released their earnings for the March quarter. Their collective quarterly performance was reasonably good, especially as it came amid an escalation in the U.S.-China trade war and rising recession fears.

Tigress Financial Raises Amazon’s Target Price to $305

While several brokerages recalibrated their price targets following the recent earnings reports from tech majors, overall, the analyst action was muted at best, with only cursory adjustments. One move that stands out is from Tigress Financial, which recently raised Amazon’s target price to a Street-high of $305 and added the stock to its Research Focus List.

Tigress Financial analyst Ivan Feinseth’s target price implies upside of almost 65% from current levels. The firm’s price target is significantly higher than the mean sell-side target price of $241.31.

Amazon Stock Forecast: The Bull Case

Amazon’s bull case revolves around multiple themes, including continued growth in its e-commerce business, margin expansion, artificial intelligence, and cloud computing. Let’s discuss these in perspective.

Amazon Might Come Out Stronger After the Tariff Tantrum 

While U.S. tariffs on imported goods are a negative for brick-and-mortar retailers and e-commerce companies, Amazon is in a much better placed than most others. As CEO Andy Jassy said during the Q1 2025 earnings call, Amazon offers the “broadest possible selection for customers at the lowest possible prices, and there’s maybe never been a more important time in recent memory than trying to keep prices low.”

We saw something similar unfold during the COVID-19 pandemic and the subsequent supply chain crisis, where customers pivoted toward Amazon. The Seattle-based company has built an impeccable logistics network, which, coupled with the network effect in the form of a wide selection of products on the platform, acts as a moat for its e-commerce segment.

Scope for Margin Expansion

Along with the continued growth in its e-commerce business, Amazon is also a margin expansion story over the medium to long term. The company has been relentlessly working on efficiencies, and after adjusting for one-time returns and inventory buildup ahead of the tariffs, it posted an operating margin of 7.2% in North America and 3.7% in the international segment. Amazon still has room to increase margins in its North American segment. It also expects the margins of its international business to converge toward North America over the long term.

Digital Advertisement Business Is a Key Growth Driver

Amazon’s digital advertisement business has been doing pretty well, and revenues rose 19% year-over-year to $13.9 billion. The digital ads business has a decent growth runway as the company ramps up ads on Prime. Amazon boasts of an “average monthly ad-supported audience of more than 275 million in the U.S. across Amazon’s owned and operated properties,” which offers a good proposition to advertisers. 

AWS and AI Growth Could Drive AMZN Stock Higher

Amazon’s Amazon Web Services (AWS) business also continues to grow, and if anything, its growth potential has received a boost from the pivot towards AI. During the Q1 earnings call, Jassy said that while previously the company believed that AWS had the potential to become a “multi-hundred-billion-dollar revenue run rate business,” he now thinks that “it could be even larger." He added, Amazon’s "AI business has a multibillion-dollar annual revenue run rate, continues to grow triple-digit year-over-year percentages and is still in its very early days.”

Along with cloud, AI has the potential to uplift Amazon’s e-commerce sales, while helping it manage the logistics and supply chain business even better. While Amazon is already using technology to improve how customers shop on its website, it can come up with even better recommendations through generative AI features. The company is also using AI to help advertisers make their ads more engaging and, in the process, more effective. 

The Bottom Line

Finally, from a valuation perspective, Amazon’s risk-reward looks quite favorable at a forward price-earnings (P/E) multiple of 29.3x. Given the kind of growth prospects the tech giant brings to the table, the multiples look quite attractive. As for AMZN hitting $300 price levels, while the near-term outlook is clouded by the tariff uncertainty and recession fears, the stock should hit the level sooner rather than later.