Piper Sandler Sticks to 'Overweight' Rating for Amazon

Piper Sandler has reaffirmed its Overweight rating for Amazon (NASDAQ:AMZN) and set a price target of $320.00. The firm cited Amazon's consistent return on invested capital, which stood at approximately 17% from 2018 to 2025, compared to a projected 14% for 2026.

Amazon's capital spending is focused on its AWS cloud computing business, in contrast to competitors Alphabet and Meta, who are investing in building frontier models. According to Piper Sandler, ROIC deterioration is most severe for these companies, down 27 percentage points and 26 percentage points respectively from 2024 to 2027.

Amazon's CEO Andy Jassy discussed the company's ROI framework and payback periods around capital expenditures during the second-quarter 2026 earnings. The firm notes that Alphabet and Meta management appear more focused on building models, products, and gross infrastructure.