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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 10/26/2026 | 249.09 |
| Change that session | +0.44% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Amazon Pops on a Target Raise. 59 Analysts, Zero Sells
Morgan Stanley named Amazon a top pick and raised its price target while keeping an overweight rating, and the stock rose 5.18% to $262.96. 24/7 Wall St. set its own target at $329.36, and analysts overall hold 16 strong buy, 43 buy, 2 hold and zero sell ratings, with a consensus target of $331.46. Q2 revenue rose 19.6% to $200.61 billion, and AWS grew 37% to $42.23 billion, its fastest pace in 18 quarters. GAAP EPS of $5.75 was lifted by a $53.4 billion one-time gain tied largely to Anthropic. Management guided Q3 net sales to $197 billion to $202 billion, and the AWS backlog stands at $496 billion. The main risks are negative trailing free cash flow of $7.6 billion and planned 2026 capex near $200 billion.
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- Amazon's EPS Is "Absolutely Exploding," Says Josh Brown. Here's What the Stock Needs to See October 29
Amazon (AMZN) reports third-quarter results after the close on Thursday, October 29, with its forward P/E at 28x, near a five-year low and well below its five-year average of 49x. Normalized EPS rose from $2.90 in 2023 to $7.17 in 2025, and analysts expect $13.37 in 2028. The stock has lagged this earnings growth amid concerns over AI infrastructure spending: Amazon expects about $220 billion of capex this year, free cash flow was a $7.6 billion outflow over the 12 months to June 30, and long-term debt doubled to $128.9 billion in the first half of 2026. The article says the report needs to show AWS growth near Q2's 37% (up from 17% a year earlier), an AWS operating margin holding near 39.4%, and operating income at or above its $22.5 billion to $26.5 billion guidance.
- UBS Thinks the Street Is Too Low on AWS. Amazon’s Quarter Is the Test
UBS argues Wall Street is too conservative on how profitable AWS can get in 2027, and Amazon's third-quarter report on October 29 is the test. AWS revenue reached $42.23B in Q2, up 37%, its fastest growth in 18 quarters, with a 39.4% operating margin and a $496 billion backlog. The article's $328.35 price target implies 31.5% upside from $249.66, while its bull case is $377.14 and its bear case is $282.77. The main risk is capex, which management raised to about $220 billion for 2026 because of higher memory costs, while trailing free cash flow is -$7.6B and Q3 sales growth guidance is 9%–12%. The author keeps a buy rating with 70% confidence, saying AWS margins are the main case supporting Amazon stock.
- Our Model and Wall Street Agree on Amazon's Target. Now the Quarter Has to Deliver.
The 24/7 Wall St. model sets a $329.70 price target for Amazon, 31.68% above the $250.38 close, with a buy rating at 70% confidence, within 0.61% of the Wall Street consensus target of $331.72. Q3 results are due October 29 after the close, with guidance for $197–202 billion in sales and $22.5–26.5 billion in operating income, versus $17.4 billion a year earlier. Q2 revenue rose 19.6% to $200.61 billion and AWS grew 37% to $42.23 billion, yet shares sit about 12.8% below their 52-week high of $287.20. The bear case of $283.71 points to about $220 billion of 2026 capex, trailing free cash flow of -$7.6 billion and long-term debt of $119.1 billion, while the $378.96 bull case rests on an AWS backlog of $496 billion. The article says the thesis depends on Q3 operating income and AWS growth staying near the Q2 pace.
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