Amazon's Stock Price Soars on Record-Breaking AWS Growth, Analysts Predict $300+ Target
Amazon's stock price has surged to $260.63 on Binance, up 1.65% in the last 24 hours, following its record-breaking AWS growth of 37% year-over-year in Q2 2026. The company's operating income in the AWS segment surged 64% year-over-year, with margins expanding to 39.4%. Bank of America reiterated a buy rating and $320 price target on Amazon, citing 'Project Mercury' - a $6.8 billion commitment to expand same-day delivery to over 1,000 fulfillment centers by 2031.
The technical analysis suggests that while the chart is not clean, with AMZN pressing against its upper Bollinger Band at $262.79 and a Stochastic reading of 97.78 indicating near-term caution, the RSI of 56.63 indicates momentum has room to run without overheating the market. The moving average structure is constructive, with price above the SMA 7, SMA 20, and SMA 200.
Analysts have an average 12-month price target of $313-$328, with zero sell ratings and only two holds. The Yahoo Finance consensus 1-year target is $313.07. Amazon's gross margin has expanded from 42.0% to 50.3% over the last four fiscal years, while its trailing P/E sits at roughly 21 and forward P/E is approximately 19.5 - a notable discount compared to the sector average.
The next five weeks are crucial for Amazon's stock price, with Q3 earnings on October 29 being the catalyst for the next move. A clean daily close above the SMA 50 at $261.45 and through immediate resistance at $263.14 opens the path to $270-$275 within 7-10 days.