Amazon Stock Stabilizes Above $260 as AWS Delivers Impressive Q2 Growth

Amazon's stock price has stabilized above $260 despite a modest decline of 0.94% on August 17, 2026, trading at $262.65 after its Q2 earnings release. The company's cloud unit, Amazon Web Services (AWS), delivered impressive numbers with a 36.7% year-over-year revenue growth and a 39.4% operating margin in the quarter.

AWS generated net sales of $42.232 billion in Q2 2026, translating into operating income of $16.621 billion for the quarter. On a trailing-twelve-month basis, AWS operating income reached $54.681 billion, reflecting a 28% year-over-year increase and solidifying its position as a major cash engine for Amazon.

The combination of AWS' impressive growth and a still-supportive analyst consensus around $322 per share has become a central part of the valuation debate. Analysts currently hold a 'Moderate Buy' consensus rating, with an average price target of $322.56 per share, implying a potential upside of 23% to 25% if those targets are realized.