Cloud services increased investment + RTO policies frequently appear bullish, multiple analysts are bullish on Amazon.com, Inc. (AMZN.US)

Recently, several institutions' analysts have released research reports on Amazon.com, Inc. and have upgraded their ratings and target prices. The tech giant Amazon.com, Inc. has recently made a big move in cloud services, further strengthening its cloud computing and artificial intelligence technology layout, with promising future growth. In addition, analysts also stated that the company's return to office (RTO) policy will be a positive factor for the stock's profit margin in 2025. On January 7th, Amazon.com, Inc. announced that its Amazon Web Services (AWS) plans to invest approximately $11 billion to expand its infrastructure in Georgia to support cloud computing and artificial intelligence technology. The company said in a statement, "Generative AI is driving an increase in demand for advanced cloud infrastructure and computing power, and AWS's investment will support the future of artificial intelligence at the Georgia data center." Amazon.com, Inc. stated that since 2010, it has invested $18.5 billion in Georgia, contributing $20.1 billion to the state's GDP. This latest investment is expected to create at least 550 jobs, serving as another example of a grand plan by a large tech company in the field of artificial intelligence. Amazon.com, Inc. CEO aggressively promotes cloud services According to foreign media reports, it is expected that Amazon.com, Inc., Microsoft Corporation, Meta, and Alphabet will collectively spend over $250 billion this year, mainly on artificial intelligence infrastructure. In the first half of 2024, the big tech giants' spending in these areas reached nearly $104 billion, a 47% year-on-year increase. By the entire third quarter, this number had soared to $170 billion, a 56% year-on-year increase. Microsoft Corporation stated in a blog post on January 3rd that the software giant expects to spend $80 billion in the 2025 fiscal year to build data centers capable of handling AI workloads. It is estimated that over half of the spending on AI infrastructure will occur in the US. AWS has undoubtedly brought returns to Amazon.com, Inc., generating $27.5 billion in revenue in the third quarter of 2024, a 19% year-on-year increase. This accounts for approximately one-sixth of Amazon.com, Inc.'s total revenue of $158.9 billion, which grew 11% year-on-year. During Amazon.com, Inc.'s third-quarter earnings call in October last year, CEO Andy Jassy told analysts, "Over the last four quarters, we've seen significant acceleration in AWS growth. "The AWS team continues to make fast progress in providing customers with AI capabilities to build substantial AI businesses. Over the last 18 months, the machine learning and generative AI features AWS has released are nearly twice that of the other leading cloud providers combined." Amazon.com, Inc. is scheduled to announce its quarterly earnings next month, with the company's stock price up about 53% year-on-year. Cantor Fitzgerald raises its price target Investment firms have been releasing research reports on Amazon.com, Inc. Cantor Fitzgerald analyst Deepak Mathivanan raised the target price for Amazon.com, Inc. from $240 to $270 and confirmed their "hold" rating on the stock. Amazon.com, Inc. is one of their preferred themes for accelerating AI deployment by 2025. The company stated that despite risks such as the proposed tariffs put forth by newly elected President Donald Trump, the fundamental backdrop for internet stocks will remain healthy as we head into 2025. Additionally, this analyst stated that innovation in areas such as AI, autonomous vehicles, Siasun Robot & Automation, and quantum computing is accelerating. He expects strong profit margin expansion in digital advertising, e-commerce, and mobile business by 2025. Wedbush and Loop: Bullish on stock performance Wedbush analyst Scott Devitt raised Amazon.com, Inc.'s target price from $250 to $260 and maintained an outperform rating on the stock, listing it as their top pick for 2025. Devitt stated that investors are underestimating the operating profit growth and improvement trends of AWS, with the cloud business seeing accelerated growth for four consecutive quarters. Amazon.com, Inc.'s operating profit growth ranks among the top of its internet peers with massive market capitalizations. Wedbush expects Amazon.com, Inc.'s operating profit to grow by 24% year-on-year by 2025, surpassing Alphabet Inc. Class C and Meta platforms. Loop Capital analyst Rob Sanderson reiterated a buy rating on Amazon.com, Inc. with a target price of $275, predicting further growth in the stock in 2025. The company stated that in addition to the expected long and exciting period of strong demand for AWS, the profit margin outlook for Amazon.com, Inc.'s retail business is also very favorable. The company's five-day "Return to Office Work" rule is also in effect in most areas. Sanderson said this will lead to some attrition, and policy benefits may lean towards high-wage employees. He stated that although this may be a challenge, it is likely to be offset by improved profitability. Overall, analysts remain bullish on Amazon.com, Inc.'s future growth and potential, expecting the company to continue its upward trajectory in the coming years.Difficult to quantify, but it will drive profit margins by 2025.According to GeekWire, Amazon.com, Inc.'s Return to Office (RTO) policy has faced dissatisfaction from working parents, who value flexibility and cost-saving factors, and have become accustomed to years of remote and hybrid work modes. In a statement to GeekWire, Amazon.com, Inc. stated that it recognizes the need for flexibility for people to work from home at times. In these cases, "employees should work with their managers as they did before the pandemic." The trend of returning to office work seems to be gaining momentum. On January 7th, it was reported by foreign media that JPMorgan Chase is preparing to have all employees return to the office five days a week, ending the hybrid work choices for thousands of employees. A recent survey showed that 23% of American companies require employees to work in the office five days a week. Most companies opt for a hybrid model, requiring employees to come into the office three days a week. Meanwhile, a survey by Resume Builder found that one-fifth of employees do not adhere to their company's RTO policy. 20% of employees stated that they would likely resign if the company begins enforcing compliance policies strictly, while another 33% said they might consider doing the same.