Amazon Stock Soars on Strong Q2 Earnings, AWS Growth

Amazon's second quarter earnings exceeded market expectations, pushing its stock up by as much as 11% in pre-market trade on Friday. The company reported a revenue of $201 billion, beating projections of $196.5 billion. Earnings per share (EPS) surged to $5.75, significantly ahead of Wall Street forecasts of $1.82.

The strong quarterly results were driven by accelerating growth in Amazon Web Services (AWS), improving returns from artificial intelligence investments, and stronger profitability. Analysts pointed to these factors as reasons for raising their price targets on the stock. Barclays noted that AWS now sits atop the AI hyperscaler pedestal, while Piper Sandler described it as one of Amazon's cleanest quarters.

Several firms raised their price targets after the earnings report. Barclays set its target at $365 from $330, Goldman Sachs at $375 from $335, and JPMorgan and Barclays each raised theirs to $365 from $330. Citi and TD Cowen increased their targets to $350 from $325 and $340, respectively.

While Amazon's increased capital expenditures, set at $220 billion for 2026, were seen as a positive signal by analysts. They viewed the higher spending as a sign of confidence in future growth prospects. Retail traders on Stocktwits applauded the strong quarterly beat driven by accelerated AWS growth and robust enterprise demand for AI.