Amazon (AMZN) shares rose 5% after Phillip Securities upgraded the stock to Buy with a 330 USD price target, following a Friday sell-off over AI spending that outpaced cash flow. Phillip analyst Helena Wang pointed to demand visibility: AWS revenue grew 39% to 46.0 billion USD last quarter, backlog reached 578 billion USD, and CEO Andy Jassy projected AWS growth above 40% in both 2027 and 2028. Against this, capital spending has nearly tripled since late 2024 to 77.3 billion USD in the September quarter, leaving trailing 12-month free cash flow at a 42.4 billion USD outflow. Alphabet and Meta face similar cash shortfalls, while Nvidia stands to benefit from the spending. Amazon's forward P/E fell to 24x, its lowest in five years and less than half its five-year average of 49x.
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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 | $2.6T |
| Close on 10/30/2026 | 240.47 |
| Change that session | -1.36% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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