Continuing a wave of optimism for the company, Amazon (AMZN) has been called a top stock for 2025 by investment bank TD Cowen. Indeed, the e-commerce juggernaut has many analysts predicting big things for the coming year, but why all the bullish sentiment?

The company has continued to diversify over the last several years. Those efforts have led them to make significant progress in both the AI and cloud computing spaces. With Amazon Web Services (AWS) its biggest growth driver of this year, more of the same could be on the horizon for 2025.

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Amazon a Top Investment for 2025: Why TD Cowen is All In on the Large Cap Stock

There is no denying the popularity and success of Amazon as a company. It has nearly singlehandedly redefined the e-commerce space and continued to explore other avenues that it can transform. Moreover, with Donald Trump winning the 2024 presidential election, Jeff Bezos recently noted he is “optimistic” about what that could mean for the company.

He isn’t the only one, either. Indeed, Amazon (AMZN) was named a top stock for 2025 by TD Cowen. Indeed, the investment bank has recently affirmed that the company still could have room to move upwards, and it could be set to benefit Wall Street massively when the calendar turns in January.

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TD Cowen analyst John Blackledge called Amazon his top pick for the coming year, according to CNBC. Moreover, he increased his price target for the company, which now states at $265. That target then signals a potential upside of 15% from where the stock ended on Wednesday.

“Amazon has several drivers that should yield robust global revenue growth with rising margins the next several years,” Blackledge said in a note issued to clients Thursday. However, he did note that the stock is not without its own risks.

Specifically, the TD Cowen analysts said slowing demand could be costly. If the e-commerce business or AWS does not maintain demand, the stock could suffer. Moreover, there could be long-term ramifications for failing to maintain demand in 2025. However, that does not appear likely, as the coming year should only see growth magnify, according to Blackledge and TD Cowen.