Amazon's stock has been a focal point for analysts, with high expectations driven by its advertising growth. Wolfe Research analysts predict a 30% rise in Amazon's shares, citing the company's leadership in retail, digital advertising, and cloud services. This optimism follows a 25% surge in the stock since the beginning of the year, with a target price of $250, surpassing the consensus target of around $225.

Amazon's recent performance has been mixed, with a 7% drop since reporting earnings on August 1. However, Morningstar views the stock as undervalued, with a fair value estimate of $195 and a wide economic moat rating. The company's strong quarter was highlighted by revenue above guidance and profitability ahead of expectations, despite a light guidance for the third quarter.

Analysts at Jefferies are also bullish, setting a price target of $235, driven by the momentum in Amazon Web Services (AWS) and advertising. AWS is expected to see 21% year-over-year revenue growth, while advertising sales are projected to grow around 20% annually. These growth prospects are expected to support a significant upside of over 50% for Amazon's stock.

Amazon's dominance in e-commerce, cloud services, and advertising, combined with its robust cash reserves and efficient management, make it a strong candidate for long-term growth. The company's strategic investments in AI and its satellite internet network, Project Kuiper, further underscore its commitment to innovation and expansion.