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Amazon's AWS Growth Hailed as Unstoppable, But Blind Spots Loom

Guavy AI Editorial Team Published August 2, 2026

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AMZN

Amazon's stock has surged after its Q2 2026 earnings report, closing July 31 at $271.58, up 15.32% from the previous trading session.

Morgan Stanley analyst Brian Nowak and his team are bullish on Amazon, lifting their price target to $335 from $330 and maintaining an overweight (buy) rating based on a 25x multiple.

Amazon's revenue reached $200.6 billion, up 20% year-over-year, while net income increased by 243.95% to $62.6 billion.

However, the impressive net income growth is partly due to non-operating pre-tax other income of $53.4 billion from its investments in Anthropic, a private company whose valuation may not be practical.

In addition, Amazon's CEO Andy Jassy acknowledged growing capital expenditures (CapEx), which are already negatively impacting free cash flow and will continue to do so due to increased demand for memory.

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