Amazon’s advertising business is gaining serious momentum. TD Cowen just bumped its price target on the stock to $315 from $300 after seeing strong results in its 14th annual advertising buyer survey.
The numbers tell a clear story. More than 60% of advertisers already using Amazon said they plan to increase their spending in 2026. That’s a pretty strong vote of confidence in the platform.
Amazon currently trades at $247.12, which means the new price target represents about 27% upside. The stock has been hovering near its 52-week high of $258.60.
The real growth driver here is Amazon’s expanding ad ecosystem. TD Cowen analyst John Blackledge pointed to several key areas where Amazon is gaining ground.
The company’s Demand-Side Platform is taking share from competing ad surfaces. Advertisers are using Amazon’s data to reach shoppers not just on Amazon itself, but across the wider internet. That’s expanding the company’s reach beyond its own properties.
Prime Video advertising represents another major piece of the puzzle. By adding ads to Prime Video, Amazon gives brands access to large audiences through video content. All of this happens inside Amazon’s ecosystem, which keeps advertisers engaged with the platform.
The survey showed that generative AI creative tools are making a real difference. These tools help advertisers build and optimize campaigns more easily. The result is better return on advertising spend, which encourages advertisers to put more money into the platform.
TD Cowen projects Amazon’s advertising revenue will climb from approximately $68.2 billion in 2025 to $141.7 billion by 2030. That works out to a 16% compound annual growth rate over the five-year period.
The firm also expects Amazon’s share of global digital advertising, excluding China, to rise from 10.6% in 2025 to 13.2% by 2030. That’s a nice chunk of market share growth in a competitive space.
Wall Street seems to agree with the bullish outlook. Analysts have a Strong Buy consensus rating on Amazon stock based on 46 Buy ratings and just one Hold assigned in the past three months.
The average price target among analysts sits at $295.05 per share. That implies about 22% upside from current levels, though TD Cowen’s target goes even higher.
Amazon’s advertising business now sits at a $2.63 trillion market cap. The company trades at a PEG ratio of 0.67, which some analysts view as undervalued relative to its near-term earnings growth potential.
TD Cowen said it stands 1% above consensus on fourth-quarter revenue estimates and 12% above consensus on operating income. The firm expects the advertising business to continue gaining share through its DSP product expansion, Prime Video ads, and AI-powered optimization of its core e-commerce advertising.
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