Amazon Stock Hits Cheapest Price Among Peers Amid AWS Growth

Amazon's stock has become one of the most reasonably priced names in the Magnificent Seven, trading at a forward multiple that looks modest against the pace of AWS reacceleration. The company's revenue reached $200.61 billion in Q2 FY2026, up 19.62% year over year, and operating income jumped 43.24% to $27.46 billion. AWS grew 36.7%, its fastest pace in 18 quarters, with backlog swelling to $496 billion.

CEO Andy Jassy said that AWS could 'very possibly be a trillion dollar annual revenue business' over time. The bull case for Amazon rests on AWS operating leverage and AI monetization, with the company running a 39.4% operating margin in Q2. Anthropic and OpenAI have committed to multi-year, multi-gigawatt Trainium deployments.

Amazon's price target is $343.50, roughly 32.8% above the current quote of $259.39. The company's forward P/E is 23, lower than Alphabet's 17 but higher than Microsoft's 24. Amazon sits between the two in terms of operating margin, with AWS growth outpacing Google Cloud.