Shares of Amazon (NASDAQ: AMZN) climbed higher on Tuesday, adding as much as 4.5%. As of 2:10 p.m. ET, the stock was up 4.1%.

There were a couple of catalysts that sent the e-commerce titan higher. One was a bullish take from a Wall Street analyst; the other was the unexpected gain on one of its investments.

Top pick

Analysts at Bank of America said that Amazon remains their top pick among large-cap and FAANG stocks in 2024, according to online investment publication The Fly. The analysts maintained their buy rating on the stock while raising their price target to $220, up from $210. This suggests potential gains for investors of 18%, compared to Tuesday's closing price.

The analysts noted that Amazon has significant potential for efficiency improvements this year. Despite progress made in 2023, Amazon remains below 2018 levels when measured using a number of logistics-utilization metrics the investment bank tracks. While a rebound in digital retail has been the primary driver so far this year, margin expansion could provide the next leg higher.

The other catalyst driving Amazon higher today was the company's investment in Rivian Automotive (NASDAQ: RIVN). Amazon owns more than 162 million shares of Rivian stock, amounting to a 16.4% stake. The electric-vehicle (EV) maker has been weighed down by results that weren't as good as Wall Street predicted and a general slowing in the EV market. As a result, Rivian stock was recently down as much as 69% from its all-time high reached late last year.

However, Rivian announced it would form a new joint venture with Volkswagen AG, including an investment of up to $5 billion. Rivian stock vaulted more than 20% higher on the news (as of this writing), which boosted the value of Amazon's stake in the company by roughly $415 million.

Time to buy?

Amazon stock has been on fire, up more than 50% over the past year. Investors have been bullish on the rebound in online retail, the company's foray into artificial intelligence (AI), and a resurgence in its cloud growth.

At less than 3x forward sales, Amazon is attractively priced, particularly when viewed in the light of its multiple growth drivers.

Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Danny Vena has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Bank of America. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

Should you invest $1,000 in Amazon right now?

Offer from the Motley Fool: Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $772,627!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of June 24, 2024