AWS Growth Powers Amazon Stock Price Prediction to $327
Amazon is entering a period where its fastest-growing business is also its highest-margin one, and analysts believe this could be the most profitable phase yet for the company. The Amazon Web Services (AWS) segment grew 37% last quarter at an operating margin of 39.4%, which is higher than almost any other business Amazon has built.
The gap between Amazon's current stock price and its predicted target suggests that investors may be underestimating the potential for growth in this area. According to a model by 24/7 Wall St., Amazon's stock price could reach $327.14, representing a 30.92% increase from its current value.
Amazon's Q2 report showed revenue of $200.61 billion, beating estimates by 2.12%, and operating income jumped 43.2% to $27.46 billion. The company also announced guidance for Q3 operating income of $22.5 billion to $26.5 billion.