08:53 AM EDT, 05/31/2024 (MT Newswires) -- Accelerating demand for Amazon Web Services' AI-backed cloud services and increasing membership in Prime are driving Amazon's ( AMZN ) shareholder value, Tigress Research wrote Thursday in a note to investors.

"Amazon ( AMZN ) is simultaneously focusing on profitability and growth as it significantly increases its capital investment to support its Amazon Web Services infrastructure and generative AI initiatives," the note said.

Tigress predicted that Amazon Web Services will be adopted by more and more businesses as they expand their AI initiatives, driven to the cloud service "by its superior operating performance, security, and industry-leading capabilities."

The note also cited the launch of Amazon Supply Chain, which offers logistics services using the company's considerable infrastructure, and initiatives like a collaboration with Panasonic on new smart televisions. It pointed to the enhancements to Prime Membership that include a partnership with GrubHub and discounts on groceries.

"Amazon ( AMZN ) continues to expand its leadership position across multiple key secular technologies and retail themes," said the note. "Amazon ( AMZN ) leverages its vast, technologically advanced infrastructure as it expands its reach across global markets and new industry verticals."

Tigress reiterated its buy rating on Amazon ( AMZN ) stock and increased its 12-month price target to $245 per share from $210.

Price: 178.90, Change: -0.42, Percent Change: -0.23