Amazon Stock’s Shocking Prediction for the Next 5 Years!

Updated

November 27, 2025

Gambar Amazon Stock’s Shocking Prediction for the Next 5 Years!

Jakarta, Pintu News – Amazon, the e-commerce and technology giant, is expected to see significant changes in its share price in the next five years. Based on recent analysis, Amazon’s share price could reach between $250 and $431 per share. The main factors influencing this prediction are the growth of Amazon Web Services (AWS), expansion of digital advertising, and cost savings through automation in fulfillment centers.

AWS Growth is Key

AWS, as Amazon’s cloud services division, has recorded revenue of $33 billion in the third quarter. This growth marks a significant acceleration, with an annualized growth rate of 20.2%, which is the largest in the last 11 quarters.

AWS not only contributes heavily to revenue, but also to operating profit, accounting for 53% of total operating profit in the second quarter. The growth of AWS is particularly noteworthy given that there are still many untapped market opportunities, where more than 85% of global IT spending is still in physical locations. This shows great potential for further cloud adoption, which will support Amazon’s share price predictions in the long run.

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Stock Price Analysis and Prediction

amazon invests in anthropic ai — Source: CNBC

According to analysis from 24/7 Wall St., Amazon’s share price in 2030 is expected to be at $431 in the bullish scenario, $77 in the bearish scenario, and $250 for the baseline scenario. Currently, the average consensus of 43 analysts suggests a price target of $294.71, with the highest estimate being $340 and the lowest being $250.

Factors such as the growth of AWS, advertising revenue, and operational efficiency from robotics heavily influence the landscape of Amazon stock predictions. Morgan Stanley, with a $300 price target, emphasizes the benefits of automation as a key driver. This analysis reflects a forward valuation that many consider reasonable given the company’s dominant position in several fast-growing markets.

Automation and Digital Advertising as Growth Drivers

Warehouse automation is expected to generate substantial cost savings in the next few years. According to Morgan Stanley analyst Brian Nowak, Amazon is on track to achieve recurring annual fulfillment/warehouse efficiencies of $2-$4 billion by 2027.

Currently, Amazon operates more than one million robots in its facilities, with its state-of-the-art robotic warehouse in Shreveport, Louisiana, successfully reducing fulfillment costs by about 25%. On the other hand, digital advertising grew 22% in the second quarter to $17.7 billion, making Amazon the third largest platform globally.

This business, which has high margins, is becoming increasingly important to the overall profit picture. However, competition in the cloud sector is increasing, with Google Cloud growing 32% and Microsoft Azure even faster at 40%.

Conclusion

With a variety of influencing factors, from AWS growth, digital advertising expansion, to operational efficiency, Amazon’s stock price predictions show a wide spectrum. Despite regulatory pressures and increased competition, Amazon’s long-term growth remains the main focus of investors and analysts. The balance between AWS dominance, advertising expansion, and automation efficiency will be key in navigating these rising obstacles.

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FAQ

What is Amazon Web Services (AWS)?

Amazon Web Services (AWS) is the cloud services division of Amazon that provides servers, storage, and various other IT services over the internet. AWS is one of the major revenue sources and profit contributors for Amazon.

How does the growth of AWS affect Amazon’s stock price predictions?

The strong growth of AWS supports Amazon’s positive share price prediction, given that AWS accounts for a large proportion of Amazon’s revenue and operating profit. This growth shows great potential for further expansion in cloud services.

What impact will warehouse automation have on Amazon’s operating costs?

Warehouse automation is expected to significantly reduce Amazon’s operating costs, with estimated recurring annual savings of $2-$4 billion by 2027. This will improve operating margins and support share price growth.

How does competition in the cloud sector affect Amazon?

Increased competition from Google Cloud and Microsoft Azure, which are growing rapidly, is putting pressure on AWS. Despite this, AWS still maintains a strong position in the market and continues to develop its services.

What regulatory risks does Amazon face?

Amazon faces regulatory pressure, including an antitrust lawsuit from the Federal Trade Commission (FTC) in 2023. This risk could affect Amazon’s business model and operations, depending on the final outcome of the legal proceedings.