12:35 PM EDT, 07/28/2025 (MT Newswires) -- Amazon.com ( AMZN ) is set to outperform on extensive investments in e-commerce, Amazon Web Services, Kuiper satellites, and advertising, UBS said in a Monday research report.

UBS said it lifted its gross merchandise value and gross profit estimates for 2026 and 2027 by nearly 2% as Amazon.com ( AMZN ) is positioned to gain share in the ecommerce segments in the near term amid fading fears of a recession.

AWS is expected to post 16% revenue growth in Q2 to $30.4 billion based on improved sentiment around core cloud infrastructure growth. Q2 retail revenue is forecast at $55.7 billion, according to the note.

Based on industry checks, UBS said it revised its Q2 advertising budget growth forecast to 8.7% from 7% earlier and set guidance of 11.3% for Q3, citing de-risked policy-based macroeconomic volatility. Analysts expect Q2 advertising revenue of $15 billion in Q2.

Kuiper-related costs are expected to be $4.8 billion in 2025 and $8.5 billion in 2026, given the accelerated pace of satellite launches. UBS revised its Q2 and 2025 revenue guidance to $161.06 billion and $688.41 billion, respectively, from $161.73 billion and $692.70 billion earlier.

The brokerage reiterated its buy rating on the stock and boosted its price target to $271 per share from $249.

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