AWS just posted its fastest growth in 18 quarters while Amazon's free cash flow turned negative and long-term debt nearly doubled. Whether that tension resolves as a multiyear earnings engine or a costly overreach depends on signals investors should be watching right now.
AWS just posted its fastest growth in 18 quarters while Amazon's free cash flow turned negative and long-term debt nearly doubled.
Whether that tension resolves as a multiyear earnings engine or a costly overreach depends on signals investors should be watching right now.
AWS just posted its fastest growth in 18 quarters while Amazon's free cash flow turned negative and long-term debt nearly doubled. Whether that tension resolves as a multiyear earnings engine or a costly overreach depends on signals investors should be…
The 24/7 Wall St. price target for Amazon (NASDAQ:AMZN | AMZN Price Prediction) is $332.67. That means 30.4% upside from the current $255.20, and our model rates the stock a buy.
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.
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
Averytin News Financial update.