AWS Drives Amazon Stock Forecast to 27% Growth

Amazon's stock price is predicted to surge by 27% in the next year due to robust growth from its cloud computing arm, Amazon Web Services (AWS). AWS recently reported its fastest revenue growth in 18 quarters, with a 37% increase to $42.23 billion.

AWS' strong performance was highlighted by CEO Andy Jassy, who pointed to significant growth in the company's AI and chip businesses. The AWS backlog has reached an impressive $496 billion.

However, concerns about high capital expenditures of around $200 billion in 2026 and negative free cash flow pose risks for the company. Despite these challenges, analysts remain optimistic about AWS' potential to reach trillion-dollar revenue status, with a price target of $338.72.