Benchmark Sees Turnaround Momentum for Amazon (AMZN) Into Holiday Quarter

Core Viewpoint - Amazon.com, Inc. (NASDAQ:AMZN) is being closely monitored by analysts as a significant AI stock, with Benchmark reiterating a Buy rating and a price target of $260 despite challenges faced in the latter half of the year [1][3] Group 1: Financial Performance and Expectations - There is a positive outlook on Amazon's turnaround momentum heading into the holiday quarter, although profit expectations for 2025 and 2026 have decreased [2][3] - The company has experienced a difficult second half of the year, with shares recently recovering 2.5%, but were previously at risk of testing near-term lows due to disappointing AWS margins in Q2 [3] - Continued positive momentum in network and fulfillment costs has been noted, despite the drop in profit expectations [2][3] Group 2: Operational Changes - Amazon plans to replace 600,000 workers with robots by 2033, indicating a significant operational shift [2][3] - The company is expected to benefit from its advertising and Prime Video ecosystem, which should yield strong margins at scale [4] Group 3: Future Growth Potential - Analysts anticipate a potential reacceleration of AWS growth and a return to upward operating income margins [4] - There is speculation about a major AI contract that could further enhance Amazon's growth prospects [4]