BMO Capital Markets named Amazon (AMZN) its top pick in the e-commerce sector, reiterating its Outperform rating and raising its price target to $390 from $380. Third-quarter 2026 net sales met expectations and operating income beat estimates by 7%, with AWS revenue rising 39% year-over-year to $46 billion, its fastest growth in 19 quarters. Advertising growth slowed to 12% excluding foreign exchange, missing consensus by 6 percentage points due to a Prime Day calendar shift, while Online Stores rose 2%. Management projected AWS growth above 40% in 2027 and 2028, and total 2026 capital expenditures are expected to be around $220 billion. BMO raised its 2026/2027 net sales estimates to $831 billion/$974 billion and its 2027/2028 capex estimates to $320 billion/$335 billion.
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