Amazon's Stock Price May Be About to Break Through

Amazon's stock price has been stuck at around 12% below its 52-week high of $287.20, despite strong earnings growth and a reacceleration in AWS revenue.

The company's advertising business is compounding at 26%, and Wall Street analysts have posted zero Sell ratings across 61 total analyst calls.

However, the market is fixated on Amazon's capital expenditures, which reached $54.208 billion in Q2 alone and are guided to roughly $200 billion in 2026.

Reaching a price target of $425 by the end of 2027 would require a gain of 67.6%, but three factors could make this possible: AWS margins holding near 39.4%, the chip business scaling past $25 billion, and advertising continuing to compound in the mid-20s.