Cantor Fitzgerald analysts maintained an Overweight rating on Amazon.com (NASDAQ:AMZN) with a price target set at $270. This positive outlook emphasizes Amazon’s strong positioning within mega-cap companies and anticipates growth in vital metrics for both the fourth quarter of 2024 and the first quarter of 2025.

Amazon Web Services (AWS) is projected to significantly contribute to Amazon’s performance, as the company capitalizes on a boost in inference workloads driven by developments in the large language model (LLM) AI layer. With a robust infrastructure and solid customer relationships, AWS is on track to gain a larger market share within the cloud computing ecosystem.

In the retail domain, Amazon plans to leverage fixed-cost advantages, which are expected to facilitate margin expansion through 2025. Analysts predict that this trend will continue despite the expected increase in operating costs related to the Kuiper satellite project, highlighting the resilience of Amazon’s core business operations. Even with investor sentiment already leaning towards a favorable short-term outlook, Amazon remains poised with numerous growth drivers in the upcoming year.