Amazon Stock Surges on AWS Growth and Record Capex

Amazon's stock price has been on an upward trend after reaching its 52-week high. The company's AWS segment grew by 37% in Q2 FY2026, the fastest pace in 18 quarters, with a $496 billion backlog.

The 24/7 Wall St. price target for Amazon is set at $338.72 over the next 12 months, implying a 27.13% upside from current levels.

The company's capex has increased to $200B annually, pushing its free cash flow into negative territory. However, bulls argue that this investment will pay off in the long run as AWS continues to grow and break even within three years.