Amazon stock could soar over 50%, says analyst

Amazon's stock is currently down nearly 20% from its peak, making it one of the cheapest in two decades based on its price-to-earnings ratio. This decline has raised interest among investors looking for potential bargains. The company's e-commerce segment remains its largest revenue source, but it has low profit margins. In contrast, Amazon's advertising and cloud computing services, particularly Amazon Web Services (AWS), generate significantly higher profits, with AWS accounting for 58% of the company's operating profits. Analyst Nat Schindler has set a 12-month price target of $306 for Amazon, suggesting a potential increase of over 50% from its current price. This reflects optimism about the company's future earnings driven by its more profitable business units.