AMZN earns a BUY rating with a $332.67 price target, representing 30% upside, anchored by AWS growing 37% at its fastest pace in 18 quarters.
Amazon trades at 24x forward earnings, cheaper than MSFT at 25x, with its 13.7% operating margin offering the most room to expand among peers.
Amazon’s free cash flow turned negative at -$7.6B as capex surged 68%, but management says most 2027 capacity is already reserved by customers.
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The 24/7 Wall St. price target for Amazon (NASDAQ:AMZN) is $332.67. That means 30.4% upside from the current $255.20, and our model rates the stock a buy.
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AMZN Price Target — 24/7 Wall St.
The thesis rests on AWS, which grew 37% last quarter, its fastest pace in 18 quarters. Amazon is also spending about $200B in 2026 on AI infrastructure, chips, robotics and satellites.
If that capacity monetizes as management expects, today’s cash flow squeeze becomes a multiyear earnings engine. Our 70% confidence reflects strong conviction, moderated by how much capital is now in the ground.
AWS Is Accelerating While the Stock Stalls
Shares slipped 0.43% over the past week and 0.62% over the past month, and they sit close to the mid-July level of $254.96. Amazon is still up 10.56% year to date. The stock trades 11.1% below its $287.20 52-week high and 30.2% above its $196 low.
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Second-quarter revenue reached $200.61B, ahead of the $196.43B estimate. GAAP EPS of $5.75 included a $53.4B pre-tax gain linked largely to Anthropic. On an adjusted basis, EPS was $1.88, beating the $1.83 estimate. Third-quarter operating income guidance of $22.5B to $26.5B compares with $17.4B a year earlier.
Why Bulls See $383 Within Reach
The bull case is $383.54. AWS now runs at a $169 billion annualized pace, and its backlog stands at $496 billion. Amazon’s AI business and its chips business each run above $25B a year. Anthropic is set to secure up to 5 GW of Trainium capacity, and OpenAI has committed about 2 GW.
Andy Jassy said AWS could “very possibly be a trillion dollar annual revenue business for us in time.” Advertising grew 26% to $19.81B. Wall Street agrees: Amazon has 16 Strong Buy ratings, 43 Buys and only 2 Holds.
AMZN Analyst Ratings — 24/7 Wall St.
Cash Burn Is the Risk Worth Watching
Our bear case is $285.79, still above today’s price. Trailing free cash flow turned negative at about -$7.6B after second-quarter capex jumped 68.44% to $54.21B. Long-term debt rose to $119.1B from $65.6B.
The Anthropic benefits will not repeat, and memory chip inflation and tariffs remain open risks. On the other side of the ledger, management says servers break even in a little less than three years and that most of its 2027 capacity is already reserved.
AMZN Price Scenario — 24/7 Wall St.
Is Amazon Cheaper Than Microsoft and Alphabet?
Microsoft (NASDAQ:MSFT) goes here because Azure is AWS’s closest cloud rival. Microsoft trades at 25 times forward earnings and earns a 45.1% operating margin.
Amazon faces competition from Alphabet (NASDAQ:GOOGL) in both cloud and advertising. It grew revenue 24.2% at 23 times forward earnings.
Amazon trades in the middle of this group. Its 13.7% operating margin leaves the most room to expand as AWS gains mix. That makes the 24/7 Wall St. price target look reasonable.
I’d Stay Constructive on Amazon
The 24/7 Wall St. price target of $332.67 has a buy rating at 70% confidence. What tips the scale for me is AWS: it is accelerating while holding a 39.4% operating margin.
I’d stay constructive if AWS keeps growing above 30% and free cash flow turns positive in 2027. I’d become more cautious if capex keeps climbing while AWS growth fades. For now, AWS growth and free cash flow are the key signals to monitor.
Amazon Price Prediction 2026-2030
These projections assume Amazon keeps executing on the plan already in place. Large upside could come from third-party Trainium sales, and continued capex without matching returns could drove the stock lower.
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