On Wednesday, Citi analyst Ronald Josey reaffirmed a Buy rating on Amazon.com (NASDAQ:AMZN) shares, maintaining a $225.00 price target. With a market capitalization of $2.24 trillion and impressive revenue growth of 10.08% over the last twelve months, Amazon continues to demonstrate its market dominance. The endorsement came after Amazon’s annual Upfront advertising event showcased the company’s growing reach and engagement, particularly in its ad-supported viewership numbers, which have increased to 300 million, up from 275 million in May 2024. InvestingPro analysis shows the company maintains a strong financial health score of 3.11, labeled as "GREAT." Prime Video’s ad-supported monthly audience also saw a rise to 130 million, compared to 115 million in the previous year.

Josey highlighted a 37% year-over-year increase in monthly viewing hours, attributing part of this growth to the impact of live sports, such as Thursday Night Football (TNF) and the upcoming NBA games set for October 2025. According to the analyst, the engagement with live sports is bolstering both viewer engagement and advertising effectiveness.

Furthermore, the analyst noted that 88% of Prime Video viewers also shop on Amazon, emphasizing the platform’s full-funnel marketing approach. This cross-utilization of services is seen as a strength for Amazon’s advertising strategy. Additionally, Josey pointed to the expansion of Amazon’s Demand-Side Platform (DSP) as a positive development.

Citi projects that Amazon’s advertising revenue will hit $66 billion in 2025, marking an 18% increase from the previous year. The firm’s positive outlook is also supported by the recent reduction in tariffs on Chinese goods to around 30%, down from 145%, and some relief on de minimis regulations. These factors are expected to contribute to a stronger retail business for Amazon, improved back-to-school sales prospects, and overall operating income.

In other recent news, Amazon Web Services (AWS), a subsidiary of Amazon.com, Inc., has announced a strategic partnership with Saudi Arabia’s HUMAIN, involving a $5 billion investment to establish an AI Zone in Saudi Arabia. This initiative aims to enhance the Kingdom’s position as a global AI leader and aligns with Saudi Arabia’s Vision 2030. Additionally, Amazon is set to invest $4 billion in Chile to establish its first data centers and cloud infrastructure in the country, expected to be operational by the second half of 2026. This expansion marks AWS’s third cloud region in Latin America, following Brazil and Mexico, and will cater to growing demand for cloud services in the region.

Moreover, Amazon has expanded its pet care offerings by partnering with Vetsource, a prominent pet pharmacy, to offer prescription pet medications in the U.S. This collaboration allows pet owners to purchase medications through Amazon’s platform, providing a convenient shopping experience. In another development, Amazon is part of the group known as the Magnificent Seven, which experienced a rally in premarket trading following the U.S. and China’s agreement to temporarily reduce tariffs on each other’s goods. This agreement is part of a 90-day cool-off period aimed at easing trade tensions between the two nations.

These recent developments highlight Amazon’s strategic moves in expanding its cloud infrastructure, AI capabilities, and consumer offerings, reflecting its ongoing commitment to innovation and growth.