TLDR
- Amazon stock gets $315 price target upgrade from TD Cowen, up from $300
- Over 60% of Amazon advertisers expect to raise spending levels in 2026
- Projected ad revenue growth from $68.2B in 2025 to $141.7B by 2030
- Demand-Side Platform and Prime Video ads gaining traction with brands
- Strong Buy rating backed by 46 analyst Buy recommendations
TD Cowen just handed Amazon a fresh price target that’s turning heads. The firm boosted its target to $315 from $300 after reviewing results from its latest advertising buyer survey.
The timing comes as Amazon trades at $247.12, putting the new target about 27% above current levels. The stock recently hit a 52-week high of $258.60.
What caught TD Cowen’s attention was advertiser enthusiasm. The firm’s 14th annual survey revealed that more than 60% of Amazon advertisers plan to increase their budgets in 2026. That’s not just talk. These advertisers are already using the platform and see enough value to commit more money.
John Blackledge, the TD Cowen analyst behind the upgrade, pointed to several factors driving growth. Amazon’s Demand-Side Platform keeps taking share from rival advertising platforms. Advertisers like using Amazon’s customer data to target shoppers across multiple channels, not just Amazon’s own sites.
Streaming Ads Create New Opportunities
Prime Video advertising represents a game-changer for Amazon’s ad business. Brands now reach millions of streaming viewers through Prime Video ads while staying inside Amazon’s advertising ecosystem. This integration gives advertisers more ways to connect with potential customers.
The survey uncovered another interesting development. Generative AI tools are making life easier for advertisers. These AI-powered features help brands create and optimize campaigns faster. Better performance translates into higher returns on ad spending, which encourages advertisers to invest more.
Five-Year Revenue Trajectory
TD Cowen laid out an aggressive revenue forecast. The firm expects Amazon’s advertising revenue to climb from approximately $68.2 billion in 2025 to $141.7 billion by 2030. That works out to a 16% compound annual growth rate.
Market share gains look promising too. Amazon should capture 10.6% of global digital advertising, excluding China, in 2025. By 2030, that share climbs to 13.2%.
The company’s $2.63 trillion market cap makes it one of the world’s largest businesses. Its PEG ratio of 0.67 suggests the stock might be undervalued relative to its growth potential.
TD Cowen positioned itself above Wall Street consensus. The firm’s fourth-quarter revenue estimate sits 1% above consensus. Its operating income forecast runs 12% higher than consensus expectations.
Analyst sentiment remains overwhelmingly positive. Amazon holds a Strong Buy consensus rating with 46 Buy ratings and one Hold rating from analysts surveyed over the past three months. The average price target among all analysts reaches $295.05, implying roughly 22% upside.
Analyst targets span a wide range from $245 to $360. TD Cowen’s $315 target lands near the upper end of that spectrum.
Three main engines drive the advertising business forward. The expanding Demand-Side Platform attracts advertisers looking for cross-channel reach. Prime Video ads tap streaming audiences. AI-powered optimization enhances the effectiveness of Amazon’s core e-commerce advertising products.
The survey data backs up TD Cowen’s bullish stance. When most advertisers plan to increase spending, it signals strong platform performance and advertiser satisfaction with results.
