Quick Read

• Amazon (AMZN) earns a BUY with a $344 price target and 33% upside as AWS posts its fastest growth in 18 quarters.

• Amazon trades between Alphabet (GOOGL) at a forward P/E of 17 and Microsoft (MSFT) at 24, with AWS growing faster than either cloud rival.

• Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Amazon didn't make the cut. Grab the names FREE today.

Amazon (NASDAQ:AMZN) has quietly become one of the most reasonably priced names in the Magnificent Seven, trading at a forward multiple that looks modest against the pace of AWS reacceleration.

Our 24/7 Wall St. price target for Amazon is $343.50, roughly 32.8% above the current quote of $259.39. Our recommendation is buy with a high confidence reading of 90%.

24/7 Wall St. Price Target Summary

AWS Reaccelerates While the Stock Lags the Story

Amazon shares are up 12.69% year to date and 16.22% over the past year, but the stock has cooled 1.89% in the past week even as the fundamentals accelerated.

In Q2 FY2026, revenue reached $200.61 billion, up 19.62% year over year, and operating income jumped 43.24% to $27.46 billion. AWS grew 36.7%, its fastest pace in 18 quarters, with backlog swelling to $496 billion. CEO Andy Jassy went further, telling investors AWS could "very possibly be a trillion dollar annual revenue business" over time.

Why Bulls See a Path to $394

The bull case rests on AWS operating leverage and AI monetization. AWS ran a 39.4% operating margin in Q2, and Jassy disclosed that Amazon's AI and Chips businesses each cleared a $25 billion annualized run rate growing triple digits.

Anthropic and OpenAI have committed to multi-year, multi-gigawatt Trainium deployments, and Amazon is on track to double power capacity by the end of 2027. Advertising grew 26% to $19.81 billion. If demand keeps pulling forward, our bull scenario points to $393.98, a 52.32% return.

What Could Go Wrong

Capital intensity is the obvious risk. Q2 capex hit $54.21 billion, up 68.44% YoY, pushing trailing free cash flow to negative $7.6 billion, and management is guiding to roughly $200 billion of 2026 capex.

Reported net income is also inflated by a $53.40 billion Anthropic mark, so comparable EPS is roughly $1.88. Bulls would counter that servers break even in under three years and monetize for 30-plus years, making today's spending a duration trade. Our bear scenario lands at $293.37.