03:39 PM EDT, 05/15/2024 (MT Newswires) -- Amazon.com ( AMZN ) continues to be one of the few large-cap companies thriving from the public's shift to ecommerce, with the company succeeding on multiple fronts, including its Prime Video unit, Oppenheimer said in a note emailed Wednesday.

Following the launch last year of an ad-supported tier for Prime Video, Amazon ( AMZN ) this week hosted an Upfront presentation for the first time to attract advertisers to its movie and TV content. The event had plenty of "star power " to get advertisers' attention - including projects led by Jake Gyllenhaal, Will Ferrell and Reese Witherspoon - although the Oppenheimer analysts said the Upfronts traditionally have focused on selling ad space for TV series rather than movies.

Oppenheimer also said that bringing on top-shelf talent for its movies and television shows is expensive and that spending will likely pay off with increased viewership. Sports similarly will attract viewers over time as Prime secures more broadcast rights. "Investors should not expect any significant tailwind" before the second half of 2025, the firm said.

Overall, the Oppenheimer expects Prime's ad-supported service to generate around $3.4 billion in yearly operating income for Amazon ( AMZN ) "once fully unveiled," or 5% of 2025 revenue projections.

Oppenheimer had an outperform rating and $220 price target for Amazon ( AMZN ).

Price: 185.59, Change: -1.48, Percent Change: -0.79