Amazon Stock Climbs Ahead of Quarterly Report Amid Optimism from Analysts

Amazon's stock rose 1.2% in premarket trading on Thursday ahead of its quarterly report due after hours. The company has been under pressure since Alphabet increased its annual capital expenditure (CapEx) target last week, which put a strain on hyperscalers like Amazon. However, analysts remain optimistic about the company's business.

Amazon's projected 2026 CapEx is approximately $200 billion, a sharp increase from $131 billion in 2025. Analysts expect the company's second-quarter revenue to rise 17% to $196.45 billion, which would be the fastest growth since the first quarter of 2021.

UBS lowered its price target on Amazon to $305 from $333 while maintaining a Buy rating on the stock. The firm cited higher CapEx estimates for 2027 and beyond due to rising component prices and demand as a potential drag on the stock.