Amazon (AMZN, Financial) has reportedly increased the advertising load on its Prime Video platform to between four and six minutes per hour. This adjustment, as noted by ad buyers and documents, aims to potentially impact the cost per thousand impressions (CPMs), although advertisers are keen on understanding how this change might affect the overall viewer experience.

An Amazon spokesperson communicated this increment in ad duration to an ad buyer, revealing that the increase is part of a gradual change. As the streaming service adapts its advertising strategy, stakeholders remain focused on balancing revenue goals with maintaining viewer satisfaction.

Wall Street Analysts Forecast

Based on the one-year price targets offered by 67 analysts, the average target price for Amazon.com Inc (AMZN, Financial) is $240.81 with a high estimate of $305.00 and a low estimate of $195.00. The average target implies an
upside of 11.81%
from the current price of $215.38. More detailed estimate data can be found on the Amazon.com Inc (AMZN) Forecast page.

Based on the consensus recommendation from 73 brokerage firms, Amazon.com Inc’s (AMZN, Financial) average brokerage recommendation is currently 1.8, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Based on GuruFocus estimates, the estimated GF Value for Amazon.com Inc (AMZN, Financial) in one year is $187.83, suggesting a
downside
of 12.79% from the current price of $215.38. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the Amazon.com Inc (AMZN) Summary page.

AMZN Key Business Developments

Release Date: May 01, 2025

• Revenue: $155.7 billion, up 10% year-over-year, excluding foreign exchange impact.
• Operating Income: $18.4 billion, up 20% year-over-year.
• Free Cash Flow: $25.9 billion trailing 12-month.
• North America Revenue: $92.9 billion, an increase of 8% year-over-year.
• International Revenue: $33.5 billion, an increase of 8% year-over-year, excluding foreign exchange.
• Advertising Revenue: $13.9 billion, growing 19% year-over-year.
• AWS Revenue: $29.3 billion, an increase of 17% year-over-year.
• AWS Annualized Revenue Run Rate: Over $117 billion.
• Net Income: $17.1 billion, includes a pretax gain of $3.3 billion from investment in Anthropic.
• Capital Expenditure: $24.3 billion in Q1, primarily for technology infrastructure and fulfillment network.
• Q2 Revenue Guidance: Expected between $159 billion and $164 billion.
• Q2 Operating Income Guidance: Expected between $13 billion and $17.5 billion.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Amazon.com Inc (AMZN, Financial) reported a 10% year-over-year increase in revenue, reaching $155.7 billion, excluding the impact of foreign exchange rates.
• Operating income rose by 20% year-over-year to $18.4 billion, showcasing strong financial performance.
• Amazon Web Services (AWS) achieved a 17% year-over-year growth, reaching a $117 billion annualized revenue run rate.
• The company set new delivery speed records, delivering more items in the same day or next day than any other quarter in its history.
• Amazon’s advertising revenue grew by 19% year-over-year, generating $13.9 billion, indicating strong growth in this segment.

Negative Points

• Amazon.com Inc (AMZN) faces uncertainty due to potential heightened tariffs, which could impact pricing and demand.
• The company recorded onetime charges related to historical customer returns and costs to receive inventory pulled forward due to anticipated tariffs.
• AWS capacity constraints are limiting the ability to capture more AI revenue, despite high demand.
• The macroeconomic environment remains complex, with uncertainties around consumer demand and global trade impacting future guidance.
• Stock-based compensation expenses are expected to increase in Q2, impacting operating income.