The article argues AWS could drive Amazon's valuation, with growth of 37% last quarter, the fastest in 18 quarters, and a backlog of $496 billion. Second-quarter revenue rose 19.6% to $200.61 billion, and GAAP EPS of $5.75 was lifted by a $53.4 billion Anthropic gain. However, a planned capital spending of about $200 billion in 2026 and recent negative free cash flow of -$7.6 billion raise doubts about Amazon's ability to fund its ambitions. The author's price target is $329.06, 31.62% above the $250 close on October 16, with a bull case of $378.24 and a bear case of $283.26.
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AMZNcloud computingearningsvaluation
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/20/2026 | 262.76 |
| Change that session | +0.12% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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