Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Wide Moat Stocks to Buy Right Now. The company enjoys a wide moat, which stems from its strong network effects and intangible assets. On October 7, analyst John Blackledge of TD Cowen reiterated a “Buy” rating on the company’s stock, retaining the price objective of $255.00. The analyst’s rating is backed by a combination of factors, which include expected revenue growth in Amazon.com, Inc. (NASDAQ:AMZN)’s key business segments like AWS, advertising, and eCommerce. The analyst expects the company’s Q3 2025 to exceed the consensus estimates, thanks to the continued expansion in such areas.
Additionally, the analyst sees a healthy Q4 2025 guidance, with AWS growth accelerating and advertising maintaining its strong performance. AWS, despite lagging behind the cloud peers, remains well-placed for revenue growth acceleration in the latter half of 2025 and beyond, fueled by higher demand for GenAI workloads. Such expected growth stems from Amazon.com, Inc. (NASDAQ:AMZN)’s significant investments in AI infrastructure, which are anticipated to alleviate the supply constraints. Furthermore, the contribution from partnerships such as Anthropic is expected to enhance AWS’ YoY growth, further cementing the favourable outlook for Amazon.com, Inc. (NASDAQ:AMZN)’s stock.
Mairs & Power, an investment advisor, released the Q2 2025 investor letter. Here is what the fund said:
“The Fund also started a new position in Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, where the company is well positioned to continue capturing market share in retail while also growing its market leading cloud business. The Fund took advantage of weakness in the stock during April to start the position as tariff news and a precipitous market decline provided an opportunity to build a position.”
While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.