10:47 AM EDT, 06/20/2025 (MT Newswires) -- Amazon.com ( AMZN ) will see improved gross margins driven by a more favorable trade cost environment, while revenue estimates remain largely unchanged, profitability will increase, Oppenheimer said in a note emailed Friday.

The company's e-commerce business continues to outgrow broader retail sales and has shown sustained market share gains, even if the pace has slowed slightly from the long-term trend, according to the note.

A more favorable tariff environment is leading to improved gross profit and earnings before interest and tax projections for Amazon's ( AMZN ) e-commerce segment, the firm added.

Oppenheimer said that Amazon ( AMZN ) is deepening its digital advertising footprint through Prime Video by forging partnerships with Roku ( ROKU ) and Disney ( DIS ) and the expanded reach enhances its long-term position in the ad market.

The firm raised its price target on Amazon's ( AMZN ) stock to $250 from $215 with an outperform rating.

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