Amazon Stock Soars as Analysts Remain Bullish on Growth

Amazon's stock price has been steadily rising, and its current valuation is looking more promising than ever. Out of 62 analysts covering Amazon, not a single one recommends selling the stock. Our proprietary model also agrees that Amazon is a buy opportunity.

The current price target for Amazon is $353.44, implying an upside of 32.24% from Wednesday's close of $267.28. This recommendation comes with a confidence level of 90%. The company's recent Q2 report showed revenue growth of 19.6%, and its cloud business, AWS, achieved its fastest growth in 18 quarters.

AWS' backlog sits at $496 billion, growing triple digits year over year, and management plans to double power capacity by the end of 2027. The company's advertising business is also a significant contributor, with revenue exceeding $70 billion annually. While there are risks worth watching, including potential AI monetization issues, our bull case projects Amazon reaching $405.60 within 12 months.

Amazon's stock price has been on the rise, gaining 15.8% year to date and 20.68% over the past year. The company's peers, Microsoft and Alphabet, have also seen growth, but Amazon's forward multiple looks reasonable given its acceleration into the largest AI capex cycle in history.