Amazon (AMZN, Financial) recently entered into a strategic agreement with FedEx to manage certain aspects of its package delivery services. This move aims to provide Amazon with more favorable cost conditions compared to its previous arrangements. Earlier this year, UPS declared a substantial reduction in its delivery services for Amazon, making the new partnership with FedEx a timely decision. While specific details of the FedEx deal remain undisclosed, the partnership marks a significant step in Amazon’s efforts to diversify and optimize its delivery network. Amazon’s spokesperson confirmed that FedEx is now among several third-party partners, including UPS and USPS, that collaborate with Amazon’s own delivery system to enhance capacity management and ensure efficient customer service.

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 $240.24 with a high estimate of $305.00 and a low estimate of $195.00. The average target implies an
upside of 15.09%
from the current price of $208.74. 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 $184.86, suggesting a
downside
of 11.44% from the current price of $208.735. 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.