Amazon Stock Predicted to Reach $400 by 2028 on Strong Earnings Growth

Amazon's stock price has been lagging behind its 52-week high, but analysts predict it will close above $400 by September 28, 2028. This prediction is based on a potential 62% surge over the next two years, with the first test being Amazon's Q3 2026 earnings report scheduled for October 28, 2026.

The company's AWS revenue has been growing at an accelerated rate, reaching $42.2 billion in Q2 and boasting a backlog of $496 billion. Management has stated that the lion's share of 2027 capacity is already reserved, along with 'quite a bit' of capacity for 2028.

Amazon's profits are also growing faster than sales, with operating income increasing by 43.24% to $27.46 billion in Q2. The company expects operating income of $22.5 billion to $26.5 billion for Q3, which is a significant step up from last year.

The three key numbers to watch on October 28 are AWS growth, operating income, and spending versus cash generation. If Amazon meets or exceeds these targets, it could be a strong indication that the company will reach its target price of $400 by September 2028.