Amazon.com Inc. (AMZN  ) remains a compelling investment opportunity despite increased infrastructure spending planned for the coming year, according to Bernstein analyst Mark Shmulik, who maintains an "Outperform" rating on the stock with a $235 price target.

What Happened: "Amazon feels like the name that you can put money to work in and get excited about," Shmulik told Yahoo Finance in a recent interview. The analyst highlighted several key factors supporting his optimistic outlook:

• AWS revenue growth shows promising momentum heading into the fourth quarter.
• Prime Video investments are strategically timed for the holiday shopping season.
• Core business operations are "on solid footing and accelerating."
• The company is building the groundwork for "a very solid 2025" in terms of free cash flow.

Why It Matters: Amazon's recent financial performance has been noteworthy. The company reported third-quarter net sales of $158.9 billion, an 11% increase year-over-year, surpassing the Street consensus estimate of $157.2 billion.

This strong performance has been a key driver of investor optimism. Amazon's third-quarter earnings also included a positive outlook for the fourth quarter, with expected net sales ranging from $181.5 billion to $188.5 billion.

Additionally, analysts have highlighted the growth potential of AWS, which is in the early stages of a significant AI cycle. The advertising segment is also seen as a fast-growing asset for Amazon.

Furthermore, Cathie Wood's Ark Invest recently made significant trades, including buying Amazon shares, reflecting confidence in the company's growth trajectory.

Price Action: The stock closed at $195.78 on Monday, down 1.09% for the day but up significantly year-to-date with a 30.58% gain. After-hours trading saw a slight decline of 0.34%, according to data from Benzinga Pro.