Amazon's Q2 Earnings Spark Wall Street to Raise Targets Amid AWS Growth Surge
Amazon's (NASDAQ:AMZN) second-quarter earnings report has led to Wall Street revising its targets for the company, particularly after the impressive performance of its Amazon Web Services (AWS) segment. The cloud growth reaccelerated to 37%, marking the fastest pace in 18 quarters.
This surge in AWS growth has prompted a scramble among analysts to adjust their predictions. According to 24/7 Wall St., its price target for Amazon sits at $432.91, representing a significant upside of 59.4% over the next 12 months.
The report highlighted several key points, including revenue landing at $200.61 billion, up 19.6% year-over-year, and earnings per share (EPS) beating consensus at $5.75. AWS delivered $42.23 billion in revenue with a 39.4% operating margin.
Bulls are optimistic about Amazon's prospects, citing the potential for further growth in AWS and the company's planned capex of $220 billion in 2026 to fill capacity constraints. They also point to advertising growth at 26% year-over-year and operating income guidance signaling operating leverage.