Goldman Sachs analyst Eric Sheridan reiterated a Buy rating and $290.00 price target on Amazon.com (NASDAQ: AMZN)

The analyst comments: "Over the short-term, we expect that the investor debates might shift from the characterization of AWS against the AI field toward increased scrutiny of the current consumer environment (& any changed behavior) in the coming quarters. Over the long-term, we remain constructive on AMZN shares (even on the back of a +13% after-hours stock reaction) and reiterate our view that Amazon can produce a strong mix of compounded revenue growth and operating margin expansion on a multi-year horizon while continuing to make critical investments in long-term growth initiatives. We see AMZN as well positioned for future outperformance as: 1) eCommerce margins continue to benefit from higher volumes across a more efficient logistics network and reductions in cost to serve per unit, 2) the advertising business continues to scale at high margins and 3) as AWS benefits from a long-tailed structural growth opportunity in the shifting needs of enterprise customers with tailwinds from the ramp of Gen AI workloads. One medium/long term wild card for AMZN remains a more consistent/regular way capital return program out of some mix of annualized free cash flow. We reiterate our Buy rating, adjust our forward operating estimates for this earnings report, and adjust our 12-month PT from $275 to $290 on the back of these estimate changes. At our updated PT, AMZN would be trading at 29x our 2027 GAAP EPS estimate (against 2027 YoY EPS growth of 27%)."

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Shares of Amazon.com closed at $222.86 yesterday.