JMP Securities analysts raised their price target for Amazon.com (NASDAQ:AMZN) to $265, up from $245, while maintaining a Market Outperform rating on the stock.
The analysts highlighted Amazon’s robust advertising capabilities, driven by its vertically integrated, full-stack advertising platform that spans from upper to lower funnel solutions. They emphasized that Amazon’s Prime membership provides unmatched data and attribution capabilities, giving it a competitive edge in the advertising space.
JMP also noted that Amazon’s connected TV (CTV) advertising has lower ad loads and costs compared to competitors. The analysts project that Prime Video will generate nearly $2 billion in revenue from advertising in 2024, with potential for further growth as ad load and cost-per-thousand impressions (CPMs) increase alongside viewing hours, bolstered by live sports licensing agreements.
Additionally, the analysts believe Amazon will eventually extend its ad-tech and data capabilities to the broader web, creating new revenue opportunities within its Advertising Services business.