Analysts set a 31% upside target for AMZN, citing AWS acceleration and record backlog despite capex concerns.
Analysts raised Amazon’s price target to $324, implying 31% upside, driven by AWS growth accelerating to its fastest pace in 15 quarters. The cloud unit’s backlog reached $364 billion, with Trainium commitments exceeding $225 billion, excluding a $100 billion Anthropic deal.
Q1 revenue hit $181.52 billion, up 16.6% year-over-year, with EPS of $2.78 beating estimates of $1.653. AWS revenue grew 28% to a $150 billion annualized run rate, while the chips business surpassed a $20 billion run rate. However, free cash flow fell 95% as capex surged to $44 billion, with 2026 spending projected near $200 billion.
Shares trade at $245.98, 12% below their 52-week high, after a post-earnings rally faded on retail investor concerns over data center overinvestment. The stock is up 6.6% year-to-date but flat over the past month.