Evercore comments on Amazon Day takeaways

Investing.com -- Evercore maintained its Outperform rating on Amazon.com Inc (NASDAQ: AMZN) with a price target of $355 following its fourth Amazon Day Symposium.

The firm said AWS and advertising can drive sustained earnings growth, while Amazon's U.S. retail position remains strong. Fresh groceries present a new growth opportunity, according to the analysis.

The symposium featured panel discussions on five business areas: Amazon Leo, Retail, Infrastructure & Logistics, Digital Advertising, and AWS. Evercore hosted 14 industry experts, including seven Amazon veterans with more than 66 years of combined experience at the company.

Evercore said AWS growth of at least mid-30% appears sustainable, with demand exceeding supply through 2028 while maintaining high margins. Advertising should continue as a growth and margin driver, supported by Prime Video and market share gains.

Amazon's U.S. retail position remains strong due to Prime membership, faster delivery, and seller loyalty, which support continued market share gains, the firm said.

The symposium identified potential challenges. Panelists were divided on whether agentic shopping poses a risk to Amazon's Discovery revenue or results in a partnership similar to ChatGPT. Logistics experts suggested cost to serve may have reached its lowest point and questioned near-term profitability of fast grocery delivery at current basket sizes.

Launch capacity will likely limit Leo through 2030, with one panelist projecting a second-place position with 20-25% market share as a best case. Cheaper open models may threaten AWS's pricing premium and margins, according to the analysis.

Supply Chain Services may generate $15-18 billion in revenue within five years, below Evercore's $25 billion base case, one panelist estimated.

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