Goldman Sachs Lifts Amazon Price Target to $375 Amid Record AWS Growth
Goldman Sachs has raised its price target for Amazon's stock to $375 from $335, citing faster cloud growth and strong AI demand. The investment bank maintained a Buy rating on the e-commerce giant after it posted stronger second-quarter results.
The cloud unit, Amazon Web Services (AWS), grew 36.7% year-over-year to $42.2 billion in the quarter, marking its fastest growth in 18 quarters. AWS's operating margin reached about 39%, helped by stronger revenue and improved operating performance.
Amazon Chief Executive Andy Jassy said, 'AWS is booming, growing 36.7% year-over-year in Q2.' He also noted that AWS could 'very possibly be a trillion-dollar annual revenue business for us in time.'
The company's custom chip business has reached a $25 billion annual run rate. Management said demand remains higher than available cloud capacity.