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Shares of Amazon (NASDAQ: AMZN) climbed higher on Thursday, adding as much as 3.8%. As of 3:05 p.m. ET, the stock was still up 2.8%.

There were a pair of catalysts that sent the cloud computing leader higher. The company got a little love from Wall Street and Amazon Web Services (AWS) got a prestigious new client.

Strong and growing momentum

Cantor Fitzgerald analyst Deepak Mathivanan initiated Amazon stock with an overweight (buy) rating while assigning a price target of $230. For those keeping score at home, that represents potential upside of 33% compared to Wednesday's closing price. The analyst cited opportunities in both online retail and AWS. Mathivanan believes Amazon has room to expand its retail margins, which will boost profits. He also suggests that AWS growth will continue to accelerate.

The analyst notes Amazon's "dominant competitive position in two large consumer and software end-markets with its retail and cloud businesses provides a lot to be bullish about over the next 12-18 months."

The second catalyst was the announcement that Central Japan Railway Company had selected AWS to advance its operations. The high-speed railway provides services to 170 million passengers each year. The company will tap AWS' Internet of Things, machine learning , and generative artificial intelligence (AI) capabilities to help make data-driven decisions, improve operational efficiencies, and lower maintenance costs.

Multiple opportunities

By acquiring an important new client, Amazon seemed to punctuate the analyst's point about the acceleration of AWS and he's clearly done his research. In the second quarter, AWS increased sales by 19%, marking the fourth consecutive quarter of accelerating year-over-year growth.

Furthermore, Amazon has no equal in the realm of digital retail, generating sales of nearly $122 billion in Q2. Even a small improvement in the company's margins will result in a big increase in profits.

Finally, at roughly 3 times sales, Amazon is attractively priced, particularly in light of the multiple opportunities for growth.

Before you buy stock in Amazon, consider this: