Amazon is JPMorgan’s best idea for the holidays

Consider adding Amazon to your holiday stock shopping list, according to JPMorgan. Analyst Doug Anmuth named the stock its best idea heading into the holiday stretch, citing expectations for 7.5% year-over-year growth and online shopping market share gains. Shares have rallied 36% this year, with the firm’s $250 price target implying 20% upside from Tuesday’s close. “Amazon maintains a leading ~45% share of US e-comm & enters the holiday season with strong momentum from early holiday promotions, [same-day/1-day delivery], regionalization, expansion of the Prime ecosystem, & competitive prices,” he wrote. AMZN YTD mountain Amazon shares in 2024 Anmuth thinks the company also looks well positioned to weather what’s poised to be the shortest holiday period since 2019 due to a combination of earlier promotions, markdowns and price-matching. His enthusiasm also stems from recent Chase consumer card data, which signals a reacceleration in overall spending. Long-term, Anmuth views Amazon’s e-commerce business as well positioned to nearly double from 22% of adjusted retail sales to 40% — and hit 24.5% this holiday season. “We expect US e-commerce Y/Y share gains to continue in 4Q & 2025, supported by deeper penetration across large, under-penetrated categories such as [consumer packaged goods], apparel & accessories, & furniture, appliances, & equipment. Amazon shares have popped more than 35% year to date, and analysts see more upside ahead. LSEG data shows the stock is expected to rise nearly 13% going forward. Of the 70 analysts covering the company, 66 rate it a buy or strong buy.