Stocks
Amazon Stock Slumps Despite Record-Breaking Cloud Growth
Amazon's stock price plummeted by 7.49% last month despite its cloud computing arm, AWS, experiencing its fastest growth in 18 quarters.
AWS reported a 37% year-over-year increase, but Amazon's heavy capital spending of $53.1 billion in Q2 and negative free cash flow outlook for 2026 contributed to the decline.
Loop Capital analyst Rob Sanderson projects a price target of $405, implying a 60% upside based on AWS's enterprise growth, retail margin expansion, and scaling ad business.
The stock's risk-reward profile is attractive if Amazon's heavy spending leads to future monetization and cash flow improvements by 2028.