"Big Banks" Citigroup: Amazon's online holiday shopping season performance is strong and still regarded as the top pick in the internet sector

Citigroup published a research report indicating that Amazon (AMZN.US) is expected to outperform market consensus in terms of revenue and operating profit for its upcoming Q4 2025 results. Specifically, it is anticipated that the revenue growth from cloud computing services (AWS) will accelerate to a year-on-year increase of 22.5% in the fourth quarter, primarily due to broader collaborations in the AI sector and the expansion of infrastructure. In terms of retail business, based on third-party data and Citigroup credit card data, the online holiday shopping season has shown strong performance, and it is believed that Amazon's market share will continue to grow. Finally, the growth in advertising demand and improvements in efficiency are expected to drive operating profit above the upper limit of the guidance.

Citigroup stated that considering the accelerated revenue growth from cloud computing services, the continued expansion of consumer share, and margin expansion, Amazon remains its top pick in the internet sector, reiterating a "Buy" rating with a target price of $320