Amazon Stock Weakened After Q2 Earnings, But Analysts See Opportunity

The post-Q2 earnings rally for Amazon's stock has faded, but analysts believe investors shouldn't give up on AMZN just yet.

Amazon was one of only two Magnificent 7 stocks to see double-digit gains after its June quarter earnings, along with Microsoft.

However, while Microsoft continues to rise and now trades above $500, Amazon's stock has pared some of its post-earnings gains.

The company's Q3 guidance trailed estimates, and it raised its 2026 capex budget by 10% to $220 billion, which is the highest among all tech companies.

Lingering concerns over Amazon's U.S. e-commerce business also persist after Walmart spooked markets with its recent quarterly earnings.

Despite these challenges, several brokerages have raised their target prices for AMZN, including Raymond James and Goldman Sachs, which increased their targets to $390 and $375, respectively.