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.
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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 10/27/2026 | 253.15 |
| Change that session | +1.63% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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