Major Bank Ratings | Citi: Amazon Shows Strong Online Holiday Shopping Performance, Reiterates "Buy" Rating

Glonghui January 23｜Citi published a research report stating that Amazon's revenue and operating profit for the fourth quarter of 2025 are expected to exceed market consensus. Specifically, the bank forecasts that revenue growth for Amazon Web Services (AWS) will accelerate to 22.5% year-on-year in the fourth quarter, mainly driven by broader cooperation in the AI sector and the expansion of infrastructure construction. Regarding the retail business, based on third-party data and Citi credit card data, the online holiday shopping season performed strongly, and Citi believes Amazon's market share will continue to grow. Lastly, growth in advertising demand and improved efficiency are expected to push operating profit above the upper end of financial guidance. Citi stated that, considering the accelerated revenue growth in cloud services, continued expansion of consumer market share, and margin improvement, Amazon remains its top pick in the internet sector, reiterating a "Buy" rating and a target price of $320.