Amazon (AMZN) Stock: TD Cowen Increases Price Target on Advertising Boom

TLDR

• TD Cowen lifts Amazon price target to $315 from $300 based on advertising business strength
• Survey shows 60% of Amazon advertisers planning budget increases for 2026
• Advertising revenue forecast to jump from $68.2B in 2025 to $141.7B by 2030
• Prime Video ads and AI-powered tools driving advertiser engagement
• Wall Street maintains Strong Buy rating with 46 Buy recommendations

Amazon’s advertising business just caught Wall Street’s attention in a big way. TD Cowen raised its price target on the stock to $315, up from $300, after completing its 14th annual advertising buyer survey.

Amazon.com, Inc., AMZN

The survey results paint a clear picture of where advertisers want to spend their money. More than 60% of current Amazon advertisers said they expect to boost their budgets in 2026. That kind of commitment signals real confidence in the platform’s effectiveness.

Amazon shares currently trade at $247.12. The new $315 price target suggests roughly 27% upside from here. The stock recently touched its 52-week high of $258.60.

TD Cowen analyst John Blackledge sees multiple growth drivers at work. Amazon’s Demand-Side Platform continues grabbing market share from competing advertising surfaces. Advertisers appreciate using Amazon’s data to reach shoppers both on Amazon properties and across the broader web.

Video Advertising Expands Reach

Prime Video advertising opens up a massive new audience for brands. By integrating ads into Prime Video, Amazon gives advertisers access to millions of viewers while keeping everything within its own ecosystem. This strategy keeps brands engaged with Amazon’s full suite of advertising tools.

The survey highlighted another interesting trend. Generative AI creative tools are helping advertisers build better campaigns faster. These AI-powered features improve campaign performance and drive better returns on ad spending. When advertisers see better results, they tend to increase their budgets.

Revenue Growth Path Looks Strong

TD Cowen projects Amazon’s advertising revenue will grow from about $68.2 billion in 2025 to $141.7 billion by 2030. That’s a 16% compound annual growth rate over five years.

The firm also expects Amazon to capture a bigger slice of the global digital advertising market outside China. Amazon’s share should climb from 10.6% in 2025 to 13.2% by 2030.

Amazon’s $2.63 trillion market cap reflects its position as one of the world’s most valuable companies. The stock trades at a PEG ratio of 0.67, which some analysts view as attractive given the company’s growth prospects.

TD Cowen positioned itself ahead of consensus estimates. The firm stands 1% above consensus for fourth-quarter revenue and 12% above consensus for operating income.

Wall Street analysts overwhelmingly favor the stock. Amazon carries a Strong Buy consensus rating based on 46 Buy ratings and just one Hold rating assigned over the past three months. The average analyst price target sits at $295.05 per share, implying about 22% upside.

The advertising business benefits from three main growth engines. The expanding DSP product brings in more advertisers looking to reach customers across multiple channels. Prime Video advertising taps into streaming audiences. AI-powered optimization makes the core e-commerce advertising product more effective for brands.

Analyst price targets for Amazon range from $245 to $360, showing a wide spread of opinions on the stock’s potential. TD Cowen’s $315 target falls in the upper portion of that range.

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